While China and many other countries have banned cryptocurrency and the United Kingdom along with a couple of more governments is planning for a framework of the segment, the Central African Republic becomes the second country in the world to adopt bitcoin as legal tender after El Salvador.
The country rich in gold and diamonds reserves announced lately to have become the first African country to adopt it as an official currency. A related bill was adopted by the parliament unanimously.
The official statement of the government said the bill may improve the conditions of the country and open new opportunities.
CAR is a poor and least developed country. It has witnessed rebel violence for decades. Currently, the official currency used is the Central African franc, which is simultaneously being used as the official currency of five other countries in the region.
Meanwhile, two former CAR prime ministers have expressed concern over the adoption of bitcoin as no guidance has been given by the Bank of Central African States, which governs the Central African franc.
El Salvador adopted bitcoin as legal tender in 2021. However, its proposed bitcoin bond issue was postponed due to skepticism and global market turmoil.
Many other African countries have not responded to bitcoin as El Salvadar did and CAR. Nigeria has barred the banks from working with the segment and later launched the country's own version of digital currency named eNaira. South Africa is exploring the regulatory part of cryptocurrencies. Tanzania said a presidential directive is being followed for the segment.
Meanwhile, people in El Salvador have ditched the country's bitcoin wallet named Chivo, which was rolled out late last year due to security and functionality issues. A survey reveals about 60 percent of the users have abandoned the app after withdrawing a sign-up incentive of $30. Many have transitioned to Bitcoin Beach and other wallets.