After El Salvador’s move of legalizing the leading cryptocurrency Bitcoin (BTC) in September 2021, the Central African Republic (CAR) has now approved cryptocurrency as legal tender in its country.
According to a statement from the CAR presidency, lawmakers voted unanimously to adopt Bitcoin as legal tender. For them, the initiative puts CAR “on the map of the world’s boldest and most visionary countries.”
CAR is known to be rich in diamonds, gold, and uranium; however, the country has been wracked by conflict for decades, despite its deposits making it a literal treasure chest. The conflict started after its independence in 1960 and still goes on today.
The move of El Salvador, the first country to adopt Bitcoin as an official currency, was criticized by several economists, stating that it increased the risk of financial instability. Even the International Monetary Fund stressed that there are “large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection.”
Accordingly, other economists and citizens also raised their concerns and fears that cryptocurrencies such as Bitcoin could make it easier for criminals to launder money. Moreover, environmental concerns were also raised following the current amount of energy cryptocurrency processes consume.
On the other hand, there were opinions about the usage of Bitcoin to undermine the CFA franc. According to them, the adoption of Bitcoin can intervene with the contest for influence over the resource-rich country between Russia and France.
Currently, there are only two million Bitcoins left to mine for the coin has reached a total of 19 million are mined out of 21 million cap according to the records last April 1st, 2022. (Read more: Bitcoin Hits 19 Million Milestone; Only 2 Million Left to Mine)
This article is published on BitPinas: Bitcoin is Now Official Currency in Central African Republic
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