Senegal: Banque Regionale de Marches to issue digital currency

Nov 11, 2016

The digital currency called eCFA will enjoy same status as CFA as legal tender.

The Banque Regionale de Marches (BRM) is making plans to issue digital currency in Senegal which will extend to Ivory Coast, Benin Republic, Burkina Faso, Mali, Niger, Togo and Guinea Bissau respectively. The issuance of the digital currency (eCFA) will recognize the e-money regulations of West Africa Economic and Monetary Union (WAEMU) and will enjoy the value status of CFA paper notes and coin as legal tender. eCFA will be available at all mobile money and e-money wallets to secure universal liquidity which will further increase the reach of financial services in Senegal. To prevent illicit transactions, the digital currency will be issued by Senegal's Central Bank only. Senegal will be the second nation in Africa to adopt digital currency after Tunisia. Digital finance system has enhanced the reach of financial services in Africa in the last one decade than traditional bricks and mortar banking has done. With more than 70 per cent of Africa's population living without access to basic banking services, a digital financial innovation such as the eCFA will strengthen access to financial services.