Bitcoin becomes an official currency in the Central African Republic

Posted Apr 27, 2022, 5:12 PM

A second country in the world makes bitcoin an official currency. The Central African Republic has adopted cryptocurrency as legal tender alongside the CFA franc, the presidency announced on Wednesday. The country is preparing a regulatory framework that aims to promote the adoption of cryptocurrencies as a mode of payment by businesses as well as for the settlement of tax contributions via platforms recognized and authorized by the government.

The National Assembly voted “unanimously” by the deputies present the law “governing cryptocurrency in the Central African Republic” and President Faustin-Archange Touadéra promulgated it, assures in a press release the Central African presidency. Adding: the Central African Republic is “the first country in Africa to adopt bitcoin as a reference currency”.

On September 7, 2021, El Salvador was the first country in the world to adopt bitcoin as legal tender. The International Monetary Fund (IMF) then denounced a dangerous decision for “financial stability, financial integrity and consumer protection”. “This approach places the Central African Republic on the map of the most courageous and visionary countries in the world”, believes on the contrary the presidency of the Central African Republic, a country in civil war since 2013.

All electronic transactions

Sending and receiving money with the Central African Republic is becoming “very difficult”, argued Minister Gourna Zacko during the presentation of the text to the National Assembly, also highlighting the binding framework of the Central Bank. Digital currency has many advantages, defended the minister, explaining that transfers in euros, dollars or CFA francs could be made with different currencies.

“The purpose of this law is to govern all transactions related to cryptocurrencies in the Central African Republic, without restriction […] carried out by natural or legal persons, public or private”, prescribes the text which refers in particular to “on-line commerce activities”, “all electronic transactions” or even “tax contributions”. The law also provides that “cryptocurrency exchanges are not subject to tax”.

An adoption of cryptocurrencies which is a technological challenge for the second least developed country in the world, according to the UN. Internet penetration in the landlocked country is around 11% of the population of 5 million, according to DataReportal, an online data portal.

The Central African Republic, which has reserves of gold and diamonds, is nevertheless one of the poorest countries in the world. Years of violent conflict and a political crisis that rocked the country ahead of the December 2020 presidential elections have had a severe impact on the economy and damaged relations with its international partners, leading to delays in the distribution of food. vital help.

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