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ECOWAS Parliament joint committee adopts report and make recommendation

July 11, 2021

 ECOWAS Parliament’s delocalised joint Committee meeting of Administration, Finance and Budget, Macroeconomic Policy & Economic Research, Public Account, Trade, Customs & Free Movement in Ouagadougou, Burkina Faso have adopted report and make recommendations having extensively discussed and deliberated on the topic “Cryptocurrencies as Facilitator for Trade and Investment in West Africa”.

The meeting noted that Cryptocurrencies offers investment opportunities, but it however, pointed out that it comes with many risks, but with the risks, all relevant stakeholders (Investors, State authorities and Central banks) are expected to play a vital role in mitigating the dangers linked to Cryptocurrencies.

Consequently, the Parliamentarians on the joint Committees made the following recommendations to the plenary for consideration and recommendation to the Commission.

 1.The ECOWAS Commission should immediately carryout necessary studies to better understand the implications of Cryptocurrencies on regional economies. WAMA, the Central banks and National Assemblies of member states should be implicated in these activities.

  1. The ECOWAS Commission should propose a legal and regulatory framework for regulating, where necessary, the use of Cryptocurrencies in the region; It should propose frameworks for Compliance and Regulation using KYC and KYT (Know Your Customer and Know Your Transactions) procedures on the public blockchain infrastructure. It should include all stakeholders in the Cryptocurrency ecosystem, such as centralized exchanges, blockchain data analytics consultants, cybersecurity experts, expert in social engineering, and Non-profit organizations.
  2. The ECOWAS Commission should immediately commence studies on the possibility of establishing a central bank digital currency (MDBC), which could be used in parallel with the ECOWAS common currency, ECO.
  3. The ECOWAS Commission should immediately propose a communication strategy for increased sensitisation and training of all stakeholders on the use of Cryptocurrencies. A high-level Blockchain and Cybersecurity Training for policymakers and compliance stakeholders should be considered.
  4. The ECOWAS Commission should recruit in-house blockchain, social engineering, and Cybersecurity personnel that will be continuously trained by leading experts in the industry, considering the rapid-evolving nature of the technology. The in-house personnel would explore the current global threats of Cryptocurrencies, how other nations are tackling these threats, and adapt them to suit the peculiar problems in West Africa. (B) Recommendations to ECOWAS Parliament:
  5. Recommend regional bodies (ECOWAS Commission, WAMA and the Central banks) to carry out necessary studies to better understand the implications of Cryptocurrencies on regional economies;
  6. Reflect on a legal and regulatory framework for regulating, where necessary, the use of Cryptocurrencies in the region;
  7. Reflect on the possibility of establishing a central bank digital currency (MDBC), which could be used in parallel with the ECOWAS common currency, ECO;
  8. Parliament should advocate for increased sensitisation and training of all stakeholders on the use of Cryptocurrencies. In this vein, Parliament should organize for a high-level Blockchain and Cybersecurity Training for policymakers and compliance stakeholders.

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