The Central African Republic adopts Bitcoin as a legal currency
The Central African Republic adopts Bitcoin as a legal currency
Bitcoin has officially been recognised as a legal currency in the Central African Republic, making CAR the second country to adopt it as legal tender after El Salvador.
The adoption of bitcoin as official money represents a decisive step toward opening up new opportunities for our country
Declared the president’s chief of staff Obed Namsio
The country has been in an ongoing Civil War for the last nine years and despite rich reserves of gold and diamonds, the country’s economy has been brought into collapse. Following El Salvador’s example, CAR counts on Bitcoin to bring financial stability and inclusion to the unbanked population.
The International Monetary Fund (IMF) criticised El Salvador’s decision and warned:
The adoption of a cryptocurrency as legal tender, however, entails large risks for financial market integrity, financial stability and consumer protection
Unlike El Salvador, CAR has focused on developing a legal framework for the economic use of Bitcoin, including the creation of a regulatory body and integration of the use of cryptocurrency in the economy.
According to an official statement, tax contributions can also be paid in cryptocurrencies through platforms recognised by the government and exchanges will not be subject to taxes in an attempt to encourage adoption.
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