Following El Salvador, Central African Republic adopts Bitcoin as legal tender

Central African Republic has adopted Bitcoin as an official currency, President Touadera said on Wednesday, becoming the first country in Africa and only the second in the world to do so. He also said the African nation is moving forward with broad crypto adoption plans.

The President of the Central African Republic (CAR), Faustin Archange Touadera, has signed a law legalizing cryptocurrencies and making Bitcoin a legally recognized currency in the country, following a unanimous parliamentary vote on the matter, Reuters reported.

According to the CAR government’s official Facebook page, Obed Namsio, the President’s chief of staff, said the move marks an important milestone for the country’s economic recovery.

“With this historic decision, the economic recovery and peace consolidation plan enter a new era and the Executive demonstrates consistency in applying the agenda of achieving strong and inclusive growth for the benefit of development and economic performance, generating prosperity for our citizens,” said in the statement.

Furthermore, the African nation says it is also moving forward with broad-based crypto adoption plans.

CAR is the first African nation to adopt Bitcoin as legal tender and joins El Salvador as only the second in the world to do so. Like El Salvador, CAR doesn’t issue its own currency. It uses the France-backed CFA franc just as El Salvador uses the US dollar.

Similar to El Salvador, CAR doesn’t issue its own currency. It uses the France-backed CFA franc just as El Salvador uses the US dollar.

Despite rich reserves of gold and diamonds, the Central African nation ranks among the least developed economies in the world, with agriculture the largest contributor to its GDP. According to data from World Bank, CAR’s GDP stood at only $2.38 billion as of 2020, and the country ranks near the bottom of the UN’s Human Development Index.

African governments have taken a varied approach to regulate cryptocurrencies and blockchain technology. Nigeria’s central bank barred local banks from working with cryptocurrencies last year before launching its own digital currency, the eNaira.

South African regulators have been exploring the potential regulation of cryptocurrencies and other blockchain technology, and Tanzania’s central bank said last year it was working on a presidential directive to prepare for cryptocurrencies.