The Central African Republic (CAR) has announced it decided to follow the footsteps of El Salvador by adopting BTC as legal tender.
‘Boldest, most visionary’
President Faustin Archange Touadera signed the bill into law after it was unanimously passed by the National Assembly, according to the presidential office’s official Facebook account Thursday morning.
Bitcoin will coexist with the Central African CFA franc (XAF), a regional currency backed by France and used in Cameroon, Chad, Congo, Equatorial Guinea, and Gabon.
The fact that the Central African Republic adopts BTC as legal tender is not intended to combat inflation as XAF actually has a lower inflation rate than the US currency. According to the most recent estimates, it is around 4.8 percent yearly, though it has ranged between -3 and 12% during the last five years.
The announcement emphasizes the significance of the achievement, however, details about the move are still sparse.
According to a report from Agence France-Presse (AFP), the country’s Presidential Chief of Staff, Obed Namsio, stated that the move places the Central African Republic on the map of the world’s boldest and most visionary countries.
Plans still unknown
Less is known about the CAR’s cryptocurrency plans — or the government’s ability to carry them out.
The Central African Republic, one of the world’s poorest countries, is highly reliant on diamond exports, agriculture, and foreign aid. Additionally, it is politically unstable. In the early 2010s, a civil conflict resulted in the breakdown of the government and the establishment of a failed state.
Touadéra was elected president in 2016 following the adoption of a new constitution.
CAR’s move came a little while after El Salvador President Nayib Bukele pushed through currency reforms in June 2021, making BTC legal tender in the Central American country alongside the US dollar. With the help of its Bitcoin wallet partner, Strike, the transfer took place in September.
Countries all around the world are beginning to recognize how the crypto realm can play a significant part in their wider economic lives, and a number of them are now enacting crypto-related taxes. One of the most recent countries to enact a crypto tax scheme was Argentina.