The Central African Republic (CAR) has approved the use of Bitcoin as an official currency. This makes it the first African nation to adopt Bitcoin as a legal tender and the second in the world after El Salvador.
Bitcoin will thus coexist alongside the regional Central African CFA franc.
The bill proposing the use of Bitcoin and other forms of cryptocurrency was unanimously passed by the Parliament of the Central African Republic, according to a statement posted on the county’s official Facebook page of the presidency.
The adoption of Bitcoin is a move expected to fuel debate on Bitcoin and other cryptocurrencies in Africa.
At least four African nations-Algeria, Egypt, Morocco, and Tunisia, have effected a total ban on all forms of crypto trading. Others such as Nigeria, Cameroon, and Gabon have some form of regulation on the blockchain-based currencies
The bill was introduced by Guarna Zacko, Minister of Digital Economy, and Calixte Ngsnongo, former mister of finance and budget. Part of the proposals in the bill adopted by CAR’s parliament is the creation of regulatory bodies that will oversee the use and adoption of cryptocurrencies.
“With cryptocurrency, there is no more control of the Central Bank. You have your money, you send it to an investor for a business, you receive it in any currency, you can dispose of it in Dollar, Euro, CFA, or Naira,” said Zacko.
The Central African Republic ranks among the world’s poorest ad least-developed countries. Plagued by civil war and political instability for years, the land-locked country in the heart of Africa has been unable to utilize its rich mineral deposits. Diamond and gold are among the nation’s natural endowments. While the move to adopt cryptocurrency in CAR received praise, especially from the global crypto community, some observers are skeptical bout it ad feel that the government might have been ill-advised.