Editorial Note: The following news reports are summaries from original sources. They may also include corrections of Arabic names and political terminology. Comments are in parentheses. Share the link of this article with your facebook friends

 

Central African Republic Adoption of Bitcoin Raises Suspicions, Amid Abuses of Civilians and Victims

May 21, 2022

UN Secretary-General in the Central African Republic, Valentine Rugwabiza, May 19, 2022

 

CAR: New UN Rep calls for readjustment of MINUSCA to protect civilians

Africa News, May 19, 2022

The new Special Representative of the UN Secretary-General in the Central African Republic, Valentine Rugwabiza, called Wednesday for a "readjustment" of the UN force to protect civilians, victims of "abuses by all parties to the conflict" in the country.

The Central African Republic, the second least developed country in the world according to the UN, has been the scene since 2013 of a civil war that was very deadly at the beginning but has greatly diminished in intensity since 2018. President Faustin Archange Touadéra, however, called on Moscow at the end of 2020 to rescue his weak and destitute army to repel a rebel offensive that threatened Bangui and his regime.

"I made a point of asking for a readjustment of the concept of our force (...) The main thing is to adopt a proactive and preventive posture of exactions on civilian populations based on reliable information," Rugwabiza said at her first press conference, held in Bangui.

"We are observing abuses by all parties to the conflict," she added.

The UN High Commissioner for Human Rights Michelle Bachelet and several groups of independent UN experts have denounced serious human rights violations against civilians, committed by rebel groups but also by the regime's armed forces and their Russian allies.

The new representative also emphasized the "worrying humanitarian situation" indicating that "the humanitarian response plan for 2022 estimated at 461 million dollars needs to be funded more than ever" because "only 22% of the necessary funds" have been made available so far.

The U.N. mission in the Central African Republic (Minusca) was deployed by the U.N. in April 2014 to try to end the bloody civil war that began in 2013 after a coup against President François Bozizé. It has about 14,000 peacekeepers whose priority is to protect civilians.

Since the beginning of 2021, Central African forces and their Russian allies have pushed the rebels out of a large part of the territories and towns they controlled, but have not been able to reinstate the presence and authority of the state everywhere in a sustainable manner.

CAR: New UN Rep calls for readjustment of MINUSCA to protect civilians | Africanews

***

Adoption of bitcoin in CAR raises suspicions

Africa News, May 6, 2022

The adoption of bitcoin as a legal tender in the Central African Republic has raised several questions by some financial analysts across Africa.

There are suspicions that the only state along with El Salvador, to have done so is immediately suspected of wanting to promote dubious transactions, at a time when the regime is under fire from the UN.

Moscow has been under international economic sanctions since the invasion of Ukraine and Bangui has complained constantly about a UN arms embargo since 2013.

On 28 April, President Faustin Archange Touadéra made the surprise announcement that the parliament of this very poor central African country had passed a law "governing all transactions" in cryptocurrencies and making bitcoin a "reference currency" alongside the CFA franc.

Its practical application seems quite hypothetical in a country of 5.5 million inhabitants.

-What's this?

In front of one of the city's few ATMs, the legalisation of bitcoin is puzzling.

"What is it?" asks Sylvain, in his 30s, in the queue. "I don't know what crypto-currencies are, I don't even have internet," laughs Joelle further on in front of her small vegetable stall.

"We will educate the population and soon move to fibre optics and a weak internet connection is enough to buy cryptocurrency," government spokesman Serge Ghislain Djorie assured AFP.

Even among the few businessmen likely to have the means, knowledge and technology to use it, the law leaves one stunned.

"I have no interest in having bitcoins here, we have no infrastructure, no knowledge to embark on this adventure, there is no cybercrime unit to guarantee security," explains an entrepreneur from Bangui who wants to remain anonymous, adding: "there are other priorities such as security, energy, access to water, internet, building roads..."

"While bitcoin may facilitate some transactions, it is a strange choice as a regular means of payment" in such a country, says Ousmène Jacques Mandeng, a professor at the London School of Economics and Political Science.

States that adopt another currency generally choose a more stable currency than their own (US dollar, euro), as the price of bitcoin is extremely volatile.

- Volatility -

"Excessive volatility in bitcoin translates into fluctuations in economies, consumption and household wealth" if the cryptocurrency is adopted, warns Ganesh Viswanath-Nastraj, professor at Warwick Business School.

"There is currently a process for a concerted framework between the six countries of the Economic Community of Central African States (CEMAC), the anti-money laundering authorities and regulators to legislate on cryptocurrencies," but "we have not been notified by Bangui of its decision," said Didier Loukakou, director of regulation at the Central African Financial Market Supervisory Commission (Cosumaf).

Bangui has surprised everyone by the incongruity of legislation allowing the use of digital currency in a state at war and almost bankrupt, which cannot feed its population without international humanitarian aid, nor pay all its civil servants without foreign donors. And whose Minister of the Economy has just deemed the state of public finances "alarming".

Adoption of bitcoin in CAR raises suspicions | Africanews

***

Central African Republic adopts bitcoin as legal tender

Africa News, April 28, 2022

 The Central African Republic has adopted bitcoin as its official currency alongside the CFA franc. The country has also legalised the use of cryptocurrencies, the presidency announced on Wednesday.

The National Assembly voted "unanimously" and considered the law "governing cryptocurrency in the Central African Republic" and President Faustin Archange Touadéra promulgated it. The Minister of State and Director of Cabinet of the Presidency, Obed Namsio said in a statement.

On 7 September 2021, El Salvador became the first country in the world to adopt bitcoin as a legal tender and the International Monetary Fund (IMF) immediately denounced the decision as dangerous for "financial stability, financial integrity and consumer protection".

"This move puts the Central African Republic on the map of the most courageous and visionary countries in the world," said the presidency of the Central African Republic.

Russian paramilitaries

Already present since 2018, Russian paramilitaries have come to reinforce the Central African soldiers to repel the rebel offensive. However, the UN, international NGOs and France, the former colonial power, regularly denounce "crimes" committed by "mercenaries" of the Russian private security company Wagner, as well as by the rebellion

"The context, with systemic corruption and a Russian partner under international sanctions, gives rise to suspicion," said Thierry Vircoulon, a specialist in Central Africa at the French Institute of International Relations (IFRI). "The search for ways to circumvent international financial sanctions by Russia invites caution," he continued.

"The law was passed by acclamation," according to the presidency, but some members of the opposition "are going to attack the law before the constitutional court," Martin Ziguélé, a former prime minister and now an opposition MP, told AFP on Wednesday.

Volatility

"This law is a way to get out of the CFA franc by a means that empties the common currency of its substance (...), it is not a priority for the country, this approach asks: who benefits from the crime?

"The purpose of this law is to govern all transactions related to cryptocurrencies in the Central African Republic, without restriction (...) carried out by natural or legal persons, public or private," prescribes the text, which refers in particular to "online trading activities", "all electronic transactions" or even "tax contributions". The law also states that "exchanges in cryptocurrencies are not subject to tax".

The volatility of bitcoin can be dizzying. By 2021, prices had soared more than 150% to an all-time high of $68,991, before collapsing by more than 30%. Even if the market has calmed down in 2022, the variations remain very strong: -17% in February, +8% in March and +10% in April. Bitcoin was trading on Wednesday at over $39,000.

Legal tender

For the time being, only El Salvador and the Central African Republic have adopted bitcoin as a legal tender, but other countries are considering doing so, with some having initiated legislative processes in this direction, according to the specialist site Coinmarketcap.com.

In Ukraine, the government has accepted donations in cryptocurrencies, raising more than $100 million in the early days of the conflict to fuel its war effort.

Central African Republic adopts bitcoin as legal tender | Africanews

***

CAR's President Touadéra celebrates one year in office

By Africa News, March 31, 2022 

President Touadéra of the Central African Republic celebrated his first year in office on Wednesday with a rally in the capital, Bangui.

The president praised the improvements in the security situation and thanked Russian and Rwandan allies for their support.

"Despite this difficult context, we are pleased with the improvement in the national security situation and the resumption of economic activities thanks to the increased strength of the defense and security forces and the support of our Russian and Rwandan allies" said Faustin-Archange Touadéra, president of the Central African Republic during a speech.

Supporters of the President's party, United Hearts Movement, also praised progress in the security situation.

"First year is good, second year is good because I feel good and there is security" said United Hearts Movement supporter, Manombassa Clémence.

Party supporter and executive at the Ministry of Finance, Frederic Ndorenamo, also praised the president's record.

"I would say that the president's record is positive, first of all in terms of security. At the time, no one could go to the provinces, but today there is security", said the executive.

President Touadéra was re-elected for a second term in office in December 2020.

CAR's President Touadéra celebrates one year in office | Africanews

***

Share the link of this article with your facebook friends