It’s no news that countries are beginning to massively adopt the use of crypto currency. African countries are certainly not taking a back seat with the recent adoption of bitcoin as a legal tender in the Central African Republic.
The country’s lawmakers had a unanimous decision on the adoption of the digital currency. It was also agreed that the coin will operate in correlation with the CFA franc.
The bill has been signed into law, by the President. This was confirmed by the Chief of Staff to President Faustin Archange Touadera, Obed Namsio.
Namsio also stated that the Central African Republic “is the first country in Africa to adopt bitcoin as legal tender.” He added that “This move the Central African Republic on the map of the world’s boldest and most visionary countries.”
Notwithstanding, the CAR is one of the most economically challenged countries in the world. Her economy is solely dependent on mining. However, this new legal tender guarantees that citizens, as well as businesses, will be able to transact in digital currency.
This move differentiates CAR from other African countries with no direct legal adoption of the crypto currency. Yeah, you guessed right. Most certainly a country like Nigeria, where financial institutions have been banned. They have ended business relationships with crypto trading service providers and individuals running such accounts.
In Line with International Monetary Policies?
There is no sufficient information out there detailing the proceedings leading to the adoption of Bitcoin as legal tender in CAR. However, the stance of the World Bank and International Monetary Fund (IMF) can be understood through the objection made to a similar move in El Salvador’s adoption pre and post – September 7, 2021.
One might assume that the move by CAR will have a positive impact on its economy in various ways. However, all fingers must still be kept crossed as the move is still in its infancy stage.
There is however no doubt that the CAR bitcoin journey is one that is worth monitoring. Hopefully, we will see other African countries make such a bold move.
See also: DragonFly Capital Floats New $650m Crypto Fund.
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