A first for an African country. The Central African Republic announced, Wednesday, April 27, the adoption of Bitcoin as a legal tender. The text of the law establishes the legal framework that governs cryptocurrencies “. Bitcoin is therefore today an official currency of the Central African Republic, in the same way as the CFA franc. The African country is only the second in the world to take such an initiative, after El Salvador in 2021. However, many questions about the interest of such recognition, by one of the poorest countries in the world, subsist.
The Central African Republic, the first African country to adopt bitcoin
The law was adopted “unanimously” by the deputies present, according to the press release from the Minister of State and Chief of Staff of the Presidency, Obed Namsio. The Presidency welcomed that, ” The Central African Republic (…) is also the first country in the world to unanimously adopt the bill that governs cryptocurrency “.
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In the world, the Central African Republic joins El Salvador, the first country to make this decision. An act which already at that time had aroused the ire and concern of several organizations, including the International Monetary Fund (IMF). He denounced an initiative that risks harming the ” financial stability, financial integrity and consumer protection “. As if to anticipate criticism, the Central African government welcomed an approach that ” places the Central African Republic on the map of the most courageous and visionary countries in the world “.
An adoption far from unanimous
In the Central African Republic, Bitcoin transactions, which will not be subject to tax, should facilitate transfers in euros, dollars or CFA francs, according to Minister Gourna Zacko. The latter also mentioned an interest in “ e-commerce activities ” and ” tax contributions “.
In the country this law does not please everyone. Members of the opposition want to challenge the text before the Constitutional Court. ” This law is a way of getting out of the CFA franc (…), it is not a priority for the country, this approach questions: who benefits from the crime? “Said former Prime Minister Martin Ziguélé, now an opposition deputy.
Beyond the opposition, several Western banks fear that Bitcoin will be used to circumvent the sanctions imposed on Russia, particularly in the field of energy. The links between the Central African Republic and Russia are well known, with the presence since 2018 of Russian paramilitary groups and in particular the most famous, Wagner.
Regardless of these ties to Russia, questions still remain. How will the Central African Republic meet the technological challenge of adopting cryptocurrencies? The country, ranked as the second least developed country in the world, has been in the throes of a civil war since 2013. Above all, Internet adoption in the Central African Republic, essential for the use of cryptocurrencies, only rises to 7.1% of the 5 million inhabitants, according to DataReportal. If the government therefore really relies on Bitcoin, many challenges remain to be met for optimal use.