Central African Republic Looks To Strengthen Economic Trajectory With Bitcoin As Legal Tender

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Central African Republic Looks To Strengthen Economic Trajectory With Bitcoin As Legal Tender
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It’s been over seven months since El Salvador became the first nation in the world to adopt bitcoin as legal tender — though the transition has been rocky.

Now, the Central African Republic has become the second sovereign state to embrace bitcoin on a national level.

The Central African Republic Takes El Salvador-Style Leap Into Crypto

The Central African Republic has become the center of hot buzz in the cryptosphere in recent days following reports of it adopting bitcoin similar to El Salvador.

The reports were confirmed on Wednesday by a statement from President Faustin Archange Touadera’s office, which indicated that he signed into law a bill that recognizes bitcoin as legal tender alongside the CFA franc. The crypto bill had been introduced by Justin Gourna Zacko, the minister of the digital economy, and the minister of finance and budget, Calixte Nganongo.

The bold and groundbreaking move to establish a legal and regulatory framework for cryptocurrencies and make bitcoin legal tender “places the Central African Republic on the map of the world’s boldest and most visionary countries,” chief of staff Obed Namsio stated.

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The Central African Republic, which boasts a population of approximately five million, has now become the second country to accept bitcoin as an official currency behind El Salvador. This means citizens and businesses in the region will be encouraged to use the top crypto asset in everyday transactions.

But it’s not all roses on the road to making the sub-Saharan African country a crypto-nation. Like El Salvador, it could face criticism from officials in developed nations as well as from international financial regulators. Moreover, the Central Africans could be wary of bitcoin’s new status as an official currency.

More Regions Are Following El Salvador’s Bitcoin Play

Under President Nayib Bukele, El Salvador made history in September 2021 by adopting bitcoin as legal tender alongside the U.S. dollar. Speculations of other countries like Mexico, Honduras, Brazil, and Swiss City following in the Central American country’s footsteps have abounded in the crypto community. Some United States territories like Arizona and Miami, have also revealed similar goals in recent months.

Most of these jurisdictions are seemingly taking a wait-and-see approach to El Salvador’s controversial bitcoin gamble, which has seen the nation-state acquire nearly 2,000 bitcoins.

The bitcoin experiment by the Central African Republic could implode, but there’s a possibility it succeeds and creates wealth for the local residents — and that makes it worth endeavoring.

Meanwhile, the surging interest in bitcoin from nations has done little to buffer the price of the cryptocurrency amid a slumping sentiment in the broader cryptocurrency market. BTC is presently trading at $39,731, a 42.24% retracement from the November 2021 all-time high.