Bitcoin Adopted as Legal Tender by Central African Republic
Updated · Apr 28, 2022
On Wednesday, the African country became just the second in the world to adopt crypto as an official currency.
Bitcoin to “Improve Conditions”
The Central African Republic has adopted Bitcoin as a legal tender, a presidential official said in a statement. It is the second country to make that move globally, after El Salvador.
Last week, lawmakers considered a bill governing the use of cryptocurrency. It includes proposals to guide the use of digital currencies and the set-up of regulatory bodies. On Wednesday, the National Assembly voted unanimously to support the bill, leading to President Faustin Archange Touadéra signing it.
Now Bitcoin will exist as an official currency alongside the CFA franc, which is backed by France.
Obed Namiso, chief of staff to the president, hailed the decision as a “decisive step towards opening up new opportunities” for the country.
“The president supports this bill because it will improve the conditions of Central African citizens,” he said to Reuters.
Namiso did not elaborate on the fine details. In spite of its rich gold and diamond reserves, the country is one of the poorest in the world.
There have been mixed reactions to the announcement, with some calling the decision “premature and irresponsible”. While cryptocurrency use is going mainstream, CAR has a very low adoption rate.
El Salvador Was There First
In September last year, Central American country El Salvador became the first to adopt Bitcoin as a legal tender. Many cryptocurrency enthusiasts cheered the news but it received widespread concerns from other quarters.
A downside to the decision reared up almost immediately as the coin’s price plummeted, leading to massive protests.
Earlier this year, the IMF urged the country’s government to reverse the decision, citing volatility as a major risk factor. It denounced the move as dangerous for “financial stability, financial integrity and consumer protection".
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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