Tuesday, June 25, 2024

CAR is first African country to adopt bitcoin as official currency

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Staff Writer
Staff Writer
Africa Feeds Staff writers are group of African journalists focused on reporting news about the continent and the rest of the world.

The Central African Republic has now adopted bitcoin as an official currency, making it the second country in the world do to after El Salvador.

El Salvador became the second country to do so when it made its own announcement last year.

CAR lawmakers voted unanimously to pass the bill legalizing bitcoin and other cryptocurrencies in parliament this week.

In a statement the country’s presidency said Bitcoin will now be considered legal tender alongside the regional Central African CFA franc.

The cryptocurrency community has lauded such a move to consider bitcoin legal tender, but is viewed by many as very controversial.

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When El Salvador took the move last year there were protests. The country faced criticism from the International Monetary Fund.

The IMF has even urged El Salvador to drop bitcoin as legal tender, flagging concerns over the risks it poses to financial stability and consumer protection.

Many analysts say Bitcoin is a volatile asset, which raises questions about its role as a standard method of payment.

Obed Namsio, chief of staff to CAR’s President Faustin-Archange Touadera has though called the move by his country as “a decisive step toward opening up new opportunities for our country.”

The CAR is rich in diamonds, gold and other valuable minerals, but is one of the world’s poorest and least-developed countries.

According to the World Bank, about 71% of CAR’s 5.4 million inhabitants live below the international poverty line as at 2020,

CAR for a long time has been gripped by political instability and violence for years.



Source: Africafeeds.com

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