The Bank of Central African States, or Banque des États de l’Afrique, which serves Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon, and the Republic of the Congo, could be closer to releasing a central bank digital currency reportedly at the influence of its board.
Bloomberg reported on Friday that the board sent an email calling for the regional bank to announce a digital currency to modernize payment structures and promote regional financial inclusion. The Central African Republic, or CAR, passed a law adopting Bitcoin (BTC) as legal tender in the country in April but has not documented any CBDC.
Nigeria’s central bank was the first in the region to launch a CBDC called the eNaira in October 2021, while South Africa’s Reserve Bank continues to explore the possible use of a CBDC through its Project Khokha initiative. The Bank of Central African States also criticized Nigeria for accepting BTC as legal tender, naming it “problematic” and something that could have a “substantial negative impact” on the monetary union of Central Africa.
Sub-Saharan African nations could face substantial challenges presenting cryptocurrencies and CBDCs to areas with limited access to electricity, both for transfers and mining. According to 2020 data from the World Bank, the CAR and Chad both rank among the lowest percentages of the population with access to electricity, at 15.5% and 11.1%, correspondingly.
CAR President Faustin-Archange Touadéra declared in June, after it adopted Bitcoin, that the country would be adopting a crypto initiative called the Sango project, which included a “legal crypto hub” and special economic zone in the metaverse.
FTX and Alameda Ventures want to offer Voyager Digital customers a new venture to start a new FTX account with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims, FTX declared in a statement Friday. To complete this, Alameda Ventures said it would like to buy all Voyager digital assets and digital asset loans, except loans to Three Arrows Capital (3AC).
A letter from an FTX and Alameda Ventures legislature explained that Voyager Digital customers who did not choose to create an FTX account would recollect their rights in the bankruptcy proceedings but would not receive early compensation.
After setting up an FX account, Voyager Digital clients could continue trading their crypto or cash out their accounts immediately. FTX co-founder and CEO Sam Bankman-Fried claimed:
“The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business — a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
Besides buying Voyager Digital’s digital assets and digital asset loans at market value, FTX would attain all its customer information for a payment of $15 million and receive trademarks and other intellectual property. FTX would also write off its $75 million loan claim against Voyager Digital.
FTX is asking Voyager Digital to reply to the offer by Tuesday, to receive accelerated approval from the bankruptcy court and close the deal by August 17. 3AC funds would still be accountable to recovery by Voyager Digital, and its customers would receive separate reimbursement independently of their contracts with FTX.
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