Central African Republic officially adopts Bitcoin as legal tender in landmark decision

Saif Naqvi
Source: Pixabay

The Central African Republic President Faustin Archange Touadera signed an earlier Bitcoin proposal into law on Wednesday, making it the world’s second country after El Salvador to officially adopt Bitcoin as legal tender.

Source: Twitter

According to Chief of Staff, Obed Namsio, the President has legalized Bitcoin as a means to pay for goods and services in the Central African Republic. The statement was made to local news agencies.

Following the decision, Obed Namsio declared “This move places the Central African Republic on the map of the world’s boldest and most visionary countries”.

The decision to legalize Bitcoin was first put forth by cabinet ministers Gourna Zacko and Calixte Nganongo. Although lawmakers had unanimously approved the proposal last week, the draft pended the President’s approval to become a law.

Lawmakers expect that the landmark decision to inculcate cryptocurrencies would help bolster the local economy. Notably, the Central African Republic is one of the poorest countries in the world and is heavily reliant on mining for its commercial success. The region was ranked at the bottom of the United Nation’s Human Development Index for 2020, coming in at 188 of the 189 countries on the list.

Central African republic To Suffer Same Fate As El Salvdaor?

Although experts claim that crypto trading is beneficial for local economies, the CAR might have to wait a while before it can fully reap the benefits of crypto adoption. Bitcoin’s year-to-date performance in 2022 is down by 17%, with macro forces keeping investors from fully investing in digital assets. The king coin was trading close to $39K on Wednesday, a 43% discount from its September all-time-high.

Statements coming from El Salvador also suggest trouble in paradise. Recently, a local economist claimed that the region’s $1 Billion Bitcoin bond issue was ‘practically dead’ due to a lack of investor interest. The bond issue had been delayed multiple times this year as unfavorable conditions persisted in the crypto market.