Central African Republic’s Bitcoin Adoption will Create Another Crypto Hell
The central African Republic legalizes Bitcoin as a currency, but what does it say about the country’s future?
The Central African Republic, a landlocked nation that lies roughly at the center of the African continent, has become the first African country to declare Bitcoin as legal tender. The Ministry of Finance and Budget and the Ministry of Digital Economy, Postal Services, and Telecommunications have submitted a joint document that recognizes Bitcoin as an acceptable currency in the Central African Republic. Additionally, the document detailed the legal framework for crypto adoption in the country. Support has also arrived in the form of opposition parties in the country who believe that the economic and financial domains of the country can benefit from digital assets.
The National Assembly believes that the new Bitcoin law will help the Central African Republic’s economic recovery. As per a report by RFI, the state-owned international radio broadcaster of France, the move to make Bitcoin legal tender in the Central African Republic came from the National Assembly, which unanimously passed the bill.
The Minister of Finance and Budget Calixte Nganongo, and the Minister of Digital Economy Gourna Zacko initiated and introduced the Bitcoin legislation. The Ministers submitted the legislation governing Bitcoin and crypto regulation in the Central African Republic. The new law would reportedly allow traders and businesses to make crypto payments and make way for tax payments in crypto through authorized entities.
The new crypto law has also made provisions for offenders who break the laws. According to a separate report by CoinTribune, offenders could be jailed for up to 20 years and fined between 100,000,000 to 1,000,000,000 Central African CFA Francs (roughly INR 1.25 crore to 12.5 crores). In September 2021, El Salvador became the first country in the world to announce Bitcoin as a legal tender. El Salvador president Nayib Bukele said in November that the country is planning to develop a “Bitcoin City”. According to the pro-Bitcoin president, sales of Bitcoin bonds with a 6.5 percent coupon rate within the first five years will fund the development of Bitcoin City. As the adoption of Bitcoin continues to grow, a special economic zone of Prospera has also recognized BTC as an acceptable currency. Following the announcement, municipalities in Honduras are now allowed to issue bonds in BTC to attract foreign investments.
Now the question is, will the Central African Republic government create another cryptocurrency massacre like the one in El Salvador? Or will it efficiently uphold itself as an example for the rest of the world? Only time will tell.