Bitcoin has been officially recognized as a legal tender in the Central African Republic (CAR), meaning that from now on BTC and other cryptocurrencies can be used as payment means for products and services. Crucially, the legal bill that adopts these new changes also recognizes Bitcoin as the official currency of the African nation. The next move it to implement blockchain tech into the nation’s many economic sectors.
The Minister Justin Gourna Zacko in an official statement commented on the latest development by saying that sending and receiving money in the Central African Republic has always posed issue for many of its population, because as the minister claims “it is controlled, it goes through the Central Bank and, there are many things.”
With the inclusion of crypto in his country, the central bank will no longer be a focal controlling body, essentially giving CAR residents the freedom to move their funds in and out of the country, as well as convert it to any currency. The Minister did mention a potential regulatory framework that is planned for integration, but details on this were trivial.
It seems that CAR is currently head strong in adopting crypto assets as payment means and as an official tender without considering any of the default risks that accompany digital coins. This gamble may result in a severe economic backlash that will further plunge the general population into severe poverty.
The Central African Republic is amongst the poorest countries in Africa, with an estimated 60% of its population living in poverty. CAR authorities believe that Bitcoin and cryptos in general will counter poverty trends, lifting a substantial portion of its populace out of economic hardship.