Reuters reports that the Central African bank regulator warns member nations of the crypto prohibition
Just weeks after the Central African Republic (CAR) proclaimed bitcoin legal money, the regional banking authority for Central Africa reminded member nations of its prohibition on cryptocurrencies on Friday, Reuters reported.
When Terra’s native Luna asset and UST’s algorithmic stablecoin UST collided, it resulted in massive losses for many individuals concerned. As the amount of Luna in circulation increased, the Terra blockchain was disrupted and trade on the market came to a standstill, as reported by The Block.
Following a unanimous majority in parliament, CAR’s President Faustin Archange Touadera signed a bill on April 27 legalising cryptocurrencies and establishing bitcoin as a recognised currency, the AFP news agency reported at the time. It was only after El Salvador that CAR followed suit.
According to a post on the official government Facebook page, CAR president Obed Namsio’s chief of staff stated the action represented an important milestone for the country’s economic recovery.
CAR’s banking regulator, the Banking Commission of Central Africa, told Reuters that the restriction was necessary to maintain financial stability in the EAC’s six member countries.