CAR First African Country To Adopt Bitcoin As National Currency | Big Middle Finger To French Economic System | Latin America Countries Next?
2 min read
The Central African Republic (CAR) has become the second-ever country to adopt Bitcoin as a national currency, following El Salvador’s adoption of the cryptocurrency last year. CAR’s government says a bill to adopt Bitcoin was passed unanimously by the country’s parliament reports Financemagnates.com.
The Central African Republic (CAR) passed a bill that formally adopts Bitcoin as legal tender. This means that cryptocurrencies may be recognized as means of payment. Many countries see cryptocurrencies as financial assets and are taxed in accordance.
Justin Gourna Zacko and Calixte Nganongo submitted the draft for the legal framework and regulations. Additionally, the bill includes adopting Bitcoin as the official currency of the country.
Blockchain technology will be gradually implemented into the many sectors of the country’s economy. 60% of the CAR citizens are estimated to be living in poverty, the country is among the least developed countries in Africa. CAR believes Bitcoin is the way forward.
Minister Justin Gourna Zacko and Latin Countries
Minister Justin Gourna Zacko said: “As an individual, sending money to the Central African Republic elsewhere becomes very difficult and also receiving payments becomes difficult because it is controlled, it goes through the Central Bank and, there are many things.”
“With cryptocurrency, there is no longer any control of the Central Bank. You have your money, you send to an investor for a company, you receive it in any currency, you can then swap it to Dollar, Euro, CFA or Naira.”
“There are so many advantages in cryptocurrencies of which I can not mention everything here, but we would have to have the legal frameworks first to allow any Central African to also benefit from this possibility of money transfers and to receiving money.”
There are speculations that Panama may be next in line for adopting Bitcoin. A bill has been prepared for Bitcoin adoption but has yet to pass in the Government.
In Paraguay, Carlitos Rejala proposed a crypto bill to recognize Bitcoin as legal tender. He announced that he will be running for Presidency in 2023 and if elected, Bitcoin will be the official currency of Paraguay.
The Central African Republic (CAR) passed a bill that formally adopts Bitcoin as legal tender. This means that cryptocurrencies may be recognized as means of payment. Many countries see cryptocurrencies as financial assets and are taxed in accordance.
Justin Gourna Zacko and Calixte Nganongo submitted the draft for the legal framework and regulations. Additionally, the bill includes adopting Bitcoin as the official currency of the country.
Blockchain technology will be gradually implemented into the many sectors of the country’s economy. 60% of the CAR citizens are estimated to be living in poverty, the country is among the least developed countries in Africa. CAR believes Bitcoin is the way forward.
Geopolitical Analysts and Financial Experts confused By CAR’s Motivations
Geopolitical analysts and financial experts are confused by motivations for the move. CAR is a landlocked nation that is rich in resources like gold and uranium, but remains one of the world’s poorest countries. It has been wracked by civil war since 2012, and only 11 percent of the 4.8 million population have access to the internet. It is one of six states in Africa to use the Central African CFA franc as its currency — “a regional currency that is backed by France and pegged to the Euro,” according to law firm Baker McKenzie.
Some have suggested that CAR’s adoption of Bitcoin is an attempt to undermine the CFA franc and offer a rebuke to the country’s former colonial power, France. “It’s a big middle finger to the French economic system,” Chris Maurice, CEO of cryptocurrency exchange Yellow Card, which focuses on users in Africa, told Reuters.
Others say the move could be tied to CAR’s close relationship with Russia. CAR was one of the few nations that chose to abstain from a United Nations vote condemning Russia’s invasion of Ukraine, while the country’s government has been condemned for deploying mercenaries from Russia’s Wagner Group to fight rebel groups.
“The context, given the systemic corruption and a Russian partner facing international sanctions, does encourage suspicion,” analyst Thierry Vircoulon of the French Institute of International Relations, told the AFP news agency (via BBC News).
