The Central Bank of Sudan (CBOS) has warned its citizens against dealing with “all types of cryptocurrencies” because of the “significant risk” they pose. The announcement came in response to the growing interest in digital assets among the country’s population, which has faced triple-digit inflation since the 2021 military coup.
On March 27, the Sudanese News Agency (SUNA) published a brief message from the Central Bank of Sudan stating that due to high risk, which includes “economic crime, electronic hacking and the risk of losing its value”, citizens are not advised to use cryptocurrencies by some kind.
Sudan’s central bank also noted legal risks, as cryptocurrencies are not classified as money “or even private money and real estate” under Sudanese law. The central bank acknowledged that it has noticed a slight increase in the number of campaigns for cryptocurrency on social media recently.
As Human Rights Foundation chief strategist Alex Gladstein pointed out in a tweet, an official ban on cryptocurrencies may already be in place. According to an analysis by Freeman Law, Sudan’s current law on electronic payments, adopted in 2007, does not apply to cryptocurrencies.
The growing interest in cryptocurrencies, which worries the Sudanese authorities, can be explained by the ongoing economic crisis. Sudan’s average inflation rate was 359.09% in 2021, down from 163.26% in 2020, according to the country’s Statistics Norway. In February 2022, the inflation rate decreased to 258.40%.