With inflation going through the roof, Sudan’s central bank cautions citizens against using crypto
Sudanese financial regulator considers cryptocurrencies to be the source of “high risks” as the demand grows.
The Central Bank of Sudan (CBOS) cautioned the country’s citizens against dealing with “all types of cryptocurrencies” due to “the high risks” that they pose. This announcement came as a reaction to the increasing interest in digital assets among the country’s population, which has been facing three-digit inflation rates since the 2021 military coup.
On March 27, the Sudan News Agency (SUNA) published a short announcement from the CBOS declaring that due to high risks, which include “financial crimes, electronic piracy and the risk of losing their value,” citizens are not advised to use cryptocurrencies of any sort.
The CBOS also cited legal risks, as cryptocurrencies are not classified as money “or even private money and property” under Sudanese law. The Central Bank admitted that it has been noticing an uptick in crypto promotions on social media recently.
As Alex Gladstein, chief strategy officer at the Human Rights Foundation, noted in a tweet, a formal ban on crypto might already be in the works. According to the analysis of law firm Freeman Law, Sudan’s current electronic payments legislation, enacted in 2007, does not cover cryptocurrencies.
The rising interest in crypto, which unnerves Sudanese authorities, can be explained by the ongoing economic crisis. According to the country’s Central Bureau of Statistics, Sudan’s inflation rate averaged 359.09% in 2021, up from 163.26% in 2020. In February 2022, it slowed down to 258.40%.