The Central African Republic Adopts Bitcoin as Legal Tender, After El Salvador

The Central African Republic Adopts Bitcoin as Legal Tender, After El Salvador

  • The Central African Republic followed in the steps of El Salvador to adopt bitcoin as an official means of payment
  • The country's parliament voted unanimously to accept bitcoin and other cryptos as a legal tender in the country
  • The CAR has been in crisis for a long time as different warlords battle to take control of the country, which is rich in mineral resources

The Central African Republic has adopted bitcoin as an official currency, following El Salvador's steps, the first country in the world to do so.

The lawmakers in the crisis-ridden country voted unanimously to legalise bitcoin and other cryptos, a statement from the country’s presidency said.

The Central African Republic, Bitcoin, Legal Tender, El Salvador
The Central African Republic adopts cryptos as official means of payment Credit: Martins Hage
Source: Getty Images

The cryptocurrency will become the country’s legal tender alongside the Central African CFA Franc, a regional currency for some countries in Africa.

The presidency cheers move as historic

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Chief of Staff to President Faustin-Archange Touadera, Obed Namsio, said the move was a decisive step at opening new possibilities for the crisis-torn country, a report by Reuters said.

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The CAR has rich diamond deposits, gold and other valuable minerals which factional warlords have sought to control, creating a crisis in the country. In addition, the country ranks as one of the world’s poorest and the least developed, according to CNBC.

About 7 per cent of the county’s 5.4 million lived below the internationally accepted poverty line in 2020, the World Bank report says.

The CAR, a landlocked country in the centre of Africa, has been in the paws of political turmoil and violence for many years.

An author, David Gerard who spoke to CNBC asked who determines who benefits from the cryptocurrency ruling, saying that internet coverage in the country is about 11 per cent.

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Praises from the crypto community

The crypto community reacted to the news with praise and hailed the decision as another move to mainstream cryptocurrency adoption.

Commentators say the move could be as contentious, pointing to protests that erupted in El Salvador after the country introduced the Bitcoin legislation, also facing backlash from the International Monetary Fund (IMF).

IMF disapproves

The IMF urged El Salvador to drop bitcoin as legal tender, citing worries over risks it portends to financial stability and consumer protection.

Bitcoin is notorious for volatility, which raises concerns about its position as a standard means of payment.

By Thursday, April 28, it traded at around $39,686, a 6 per cent decline in the last 24 hours. It also shed about 42 per cent of its value since it peaked above $68,000 in November 2021.

The Central African country is a very close ally of Russian mercenaries, which directly assisted the government, the United Nations said.

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UK government orders illegal crypto ATMs to shut down operations has reported that Crypto adoption is so widespread in the United Kingdom that operators started erecting Automated Teller Machines (ATMs) for it.

On Friday, March 11, 2022, the United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), announced that crypto ATM operators should shut down with immediate effect as they lack the requisite license to operate.

The FCA, in a published notice on Friday, said non of the operators have the required license to do business in the UK; hence all machines are illegal.


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