DIGITAL CURRENCY AND THE LAW: THE WAY FORWARD FOR A STABLE REGULATORY FRAMEWORK IN CAMEROON’S MONETARY AND FINANCIAL SYSTEM

Abstract

Digital currencies which are digital representations of value with no physical form created and held electronically, have gained popularity since their introduction more than a decade ago. This article identifies some of the benefits/potential challenges and regulatory concerns which would result in the use of these digital currencies on the Cameroon’s monetary and financial system. It provides a reading of records from data collected from documentary and online sources. The results show that for digital currency to be relevant in the Cameroon’s economy, the regulation must take cognizance of the evolving digital transformations of money and financial modes of payment transactions. What is clear is that digital currency systems are becoming a viable alternative form of electronic stored value exchange for some applications. Digital currency such as crypto-currencies provide an efficient means of value exchange that in some cases can be more efficient than current banking infrastructure particularly for cross-border value transfers or micro-payment transactions. The results are relevant to alerting the Cameroonian authorities to the dire need for re-adaptation and reform of the monetary and financial laws to regulate digital currency. Digitalization has revolutionized money and financial payments systems, making the basis on which monetary and financial laws were founded to be lacking and questionable, thereby presenting regulatory concerns.