The Central African Republic (CAR) has announced the adoption of bitcoin as legal tender. CAR is the second country to adopt BTC as legal tender after El Salvador. With this decision, the country will be the first on the African continent to announce the use of Bitcoin for payments.
Central African Republic uses BTC as legal tender
The Central African Republic is one of the poorest countries in the world, but it has abundant natural resources such as gold, diamonds and uranium. The country is closely tied to Russia, and for decades it has been rocked by conflict.
Lawmakers across the country voted unanimously to pass a bill that supports the use of bitcoin as legal tender. A statement from the Central African presidency said the move would put CAR “on the map of the boldest and most visionary countries in the world. »
After passing the bitcoin law in September last year, El Salvador was the first country to adopt bitcoin as legal tender. Some of the world’s largest financial institutions opposed the move, including the World Bank and the World Bank. International Monetary Fund (IMF). These institutions have warned that bitcoin carries high risk due to its price volatility.
The use of cryptocurrencies in illicit activities such as money laundering and terrorist financing has also raised concerns. The negative effects of cryptocurrencies on the environment were also discussed as one of the main reasons to oppose these assets.
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CAR has no internet access, with a WorldData report indicating that only 4% of the country’s inhabitants can access the web. This could be a major barrier to bitcoin adoption in the country, as cryptocurrency transactions are highly dependent on the internet.
Residents of the country’s capital also shared mixed reactions to the news. An economist in the country, Yann Dawaro, said cryptocurrencies would facilitate transactions as they can be done easily using smartphones.
The CAR currently uses the CFA currency, but Dawaro argued that this currency does not benefit Africa. Several countries that use the CFA have called for its abolition, saying it is a reminder of the colonial period and allows France to continue to control the country’s economy.
However, Damaro’s optimism was not shared by Sydney Tickaya, a computer scientist. Tickaya said internet access remained underdeveloped in the country, adding that the government needed to focus more on important issues such as better access to education and clean water.