Central African Republic (CAR) has officially adopted Bitcoin (BTC) as a legal tender in the country.
The move was ushered in with the unanimous adoption of the premier digital currency by the country’s lawmakers, who noted that the coin will now operate in correlation with the CFA franc.
As confirmed by the Chief of Staff to President Faustin Archange Touadera, Obed Namsio said the bill has been signed into law by the President. According to Namsio, the Central African Republic “is the first country in Africa to adopt bitcoin as legal tender,” Namsio said, adding that “This move places the Central African Republic on the map of the world’s boldest and most visionary countries.”
The CAR is one of the least economically buoyant countries in the world whose economy is solely dependent on mining. With the new legal tender, citizens, as well as businesses, will be able to transact in the digital currency, a trend that will be markedly different from other African nations, like Nigeria, known to have banned financial institutions working in the country from having business relationships with crypto trading service providers.
Indirectly Defying International Bodies?
While not much is known about the proceedings leading to the adoption of BTC as legal tender in CAR, the stance of the World Bank as well as those of the International Monetary Fund (IMF) is known through their objection to a related move made by El Salvador pre and post-September 7 last year.
Taking a cue from El Salvador, there has been a significant investment in digital currencies as President Nayib Bukele is known to always buy the dip – stacking up new Bitcoin units in periods of price corrections, a luxury that the CAR may not have.
There are a series of surveys that also suggest the BTC adoption in El Salvador is not as popular as widely publicized by the government. While still in its infancy, the CAR Bitcoin journey is one that is worth watching out for.
This article was originally published on blockchain.news