Central Africa’s regional banking regulator reminded member states on Friday of its ban on cryptocurrencies, just weeks after the Central African Republic (CAR) made bitcoin legal tender, Reuters said.
The reminder came after a chaotic week for crypto when the linked meltdown of the algorithmic stablecoin UST and Terra’s native Luna asset resulted in big losses for many of those involved. It also led to stoppages of the Terra blockchain and market trading halts as the circulating supply of Luna skyrocketed, The Block reported.
President Faustin Archange Touadera of CAR signed a law on April 27 legalizing cryptocurrencies and making bitcoin a recognized currency in the country after a unanimous parliamentary vote, the AFP news agency reported at the time. CAR was only the second country to do so after El Salvador.
Obed Namsio, the CAR president’s chief of staff, said the move marked an important milestone for the country’s economic recovery, according to a post on the government’s official Facebook page.
Still, the Banking Commission of Central Africa, which regulates the banking sector in the six-nation Economic and Monetary Community of Central Africa, to which CAR belongs, said its prohibition was meant to ensure financial stability, according to Reuters.