The Central African Republic (CAR) has become the second country after El Salvador to declare bitcoin legal tender. Customers can walk into any store or company and purchase goods and services with bitcoin and owners and managers must be accepting of the digital currency.
The Central African Republic Says “Yes” to Bitcoin
In a statement, Obed Namsio – the chief of staff of Faustin Archange Touadera, the President of the Central African Republic – said that a bill had been introduced not too long ago seeking the legalization of cryptocurrencies. The bill has now been signed by the President and turned into law. He said:
The move places the Central African Republic on the map of the world’s boldest and most visionary countries.
Up to this point, the Central African Republic has been using what’s known as the CFA franc as its national currency. The maneuver will certainly seek to limit the country’s dependence on the global financial market which continues to be rocked by inflation and ongoing economic weakness.
In addition, CAR has long been dependent on mineral extraction as a means of keeping its economy in place. The Central African Republic is known for being one of the poorest and most troubled nations in the world having suffered from a nine-year civil war at the time of writing.
Martin Ziguele – a former prime minister for CAR – explained:
This law is a way of getting out of the CFA franc through a means that guts the common currency. It (the law) isn’t a priority for the country. This move raises the question: who benefits from it?
The nation is clearly taking a page out of El Salvador’s book. The country from Central America decided that bitcoin would be legal tender beginning in September of last year. Officials regulated the cryptocurrency by giving everyone access to the Chivo wallet, which would allow them to store bitcoin and digital assets.
They could then walk into any store and pay for items with BTC along with USD, which up to that point, the nation had been primarily dependent on. Store owners would then be required by the nation’s laws to accept bitcoin for purchases.
The Central African Republic allegedly shares ties to Russia, which is under heavy scrutiny due to its invasion of Ukraine back in February. The country has been sanctioned by the United States and many of its allies, and as a result, the nation’s fiat currency – the ruble – has dropped heavily in value.
Is the Nation Tied to Russia?
Thierry Vircoulon – a specialist on central Africa at the French Institute of International Relations (IFRI) – commented on the situation, saying:
The context, given systemic corruption and a Russian partner facing international sanctions, does encourage suspicion. Russia’s search for ways to get around international sanctions is an invitation to be cautious.
Source: https://www.livebitcoinnews.com/following-el-salvador-the-central-african-republic-declares-btc-legal-tender/