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HomeTechnologyNow Central African Republic gives legal tender status to Bitcoin

Now Central African Republic gives legal tender status to Bitcoin

Bitcoin is a popular cryptocurrency around the globe. It became operational on 3rd January 2009. It is the grandest of all alternate currencies that are existing now in the crypto space. The journey of Bitcoin as a new decentralized peer-to-peer money was not that easy. It had to struggle for getting legally accepted. Well, some countries still do not approve of it and ban its use. But countries like El Salvador and now India have finally acknowledged their value. And now the Central African Republic has also joined the list of countries where Bitcoin is legally accepted. Let us explore more about this matter. 

The central African Republic accepts Bitcoin as legal tender

According to a recent crypto news update, the Central African Republic has given legal approval to the globally popular cryptocurrency Bitcoin. It joins the list of countries like the United States, the European Union, Canada, El Salvador, and India. Mentioning some facts about CAR, it ranks among the poor nations in the world. But despite it, the country is prosperous in uranium, diamonds, and gold also. CAR is broken due to discord that has been for decades. It has friendly ties with Russia helping them with hired troops from Wagner Group in combat against the enemy army.

Accepting Bitcoin as legal tender

Bitcoin got accepted as legal tender after lawmakers agreed and voted unitedly for it, according to the CAR presidency. Now the Central African Republic has been put on the world map among the strongest and most visionary nations. El Salvador is the first central American country that took a remarkable step in giving legal acceptance to Bitcoin, last year in September. Well, the decision did not go well with most economists. Even IMF (International Monetary Fund) did not approve it and called it a big risk to financial stability. 

Bitcoin: An easy tool for unlawful activities

Other people who were against the move of Bitcoin legal acceptance, expressed concern about its misuse for illegal activities like money laundering. Plus, it is also a threat to the environment, as it generates so much electricity. At the time of cryptocurrency use, there came a need for the internet but 3 years ago, only 4% of people in the Central African Republic had access to the web, as stated by the WorldData website. At present, CAR finds the use of the CFA franc, as its native currency backed by France and other early French colonies in Africa. 

For some people, BTC acceptance is an effort to erode CFA. Bangui, the capital of the Central African Republic had mixed opinions on Bitcoin’s legal adoption. According to Yann Daworo, an economist, the step of giving legal tender status to Bitcoin is positive, as it would be easier for people to make transactions via their smartphones, and also to convert BTC to another currency. Plus, it would also benefit entrepreneurs who won’t be finding a compulsory need to roam with their suitcases carrying CFA francs to convert them into dollars or other fiat currency to make purchases in abroad countries. 

CFA: not to be used to benefit Africa

The economist Yann Daworo also added about the no use of CFA to benefit Africa. There are ongoing calls in various nations for the currency to be dropped down by those who view it as an artifact of colonial times, encouraging France to continue its economic hold. 

According to Sydney Tickaya, a computer scientist, the acceptance of dominant cryptocurrency is a premature move. He called it thoughtless. Tickaya justified his statement by telling about the underdeveloped state of the internet in CAR. And Bitcoin is completely reliant on it. And the country has other serious issues to deal with. These are education, drinking water access, and security

Ongoing conflicts in CAR since 1960

Ever since its independence in 1960, Central Africa Republic has been through rough times of ongoing conflicts. The large Christianity following nation was under the control of Muslim rebels in 2013. The military fought back against the enemy forces in self-defense, causing massacres on a massive level. When in 2016, President Faustin-Archange Touadera joined the office, CAR began switching its association from France and came in support of Russia. 

Final words

Well, it is good to see that Bitcoin is gaining legal adoption. After El Salvador, Central Africa Republic has set a new example. So now it joins the brigade of crypto-friendly countries including Canada, the United States, Australia, and India. When Bitcoin got its legal tender status in El Salvador, there were mixed opinions among the people and experts. But somehow the crypto king got its legal status. 

The same is in the case of CAR, where there have been mixed views. Some are in support of it, and others call it an irresponsible and immature decision. Well, differences in opinion are common. Log on to Cryptoknowmics and stay abreast with the latest crypto news and events. Also explore topics like how to transfer Bitcoin from GDAX to Binance, etc.