The Central African Republic adopts Bitcoin as Legal Tender

from Token Party

According to a report published Wednesday, April 27, 2022 by the news agency “Agence France-Presse”, the president of the Central South African Republic, Faustin-Archange Touadéra, announced that he has accepted Bitcoin as legal tender.

Bitcoin as legal tender in the Central African Republic

After El Salvador, another country legalizes cryptocurrencies by adopting Bitcoin as legal currency along with the CFA Franc (Franc of the French Colonies of Africa). The news comes after the signing by the President of the Central South African Republic of the bill that establishes a regulatory framework for the use of cryptocurrencies in the African country. The country’s National Assembly, on April 21, unanimously approved the bill presented by the Minister of the Digital Economy, Gourna Zacko, and by the Minister of Finance and Budget, Calixte Nganongo. A historic event and "a bold and visionary move for the country," said Obed Namsio, Chief of the President's Cabinet.

The press release by President Faustin-Archange Touadéra, in french.

Can Bitcoin Counter Poverty in the Country?

The measure regulates a management of cryptocurrencies according to a decentralized framework and free from the influence of central banks. An innovative and revolutionary move that aims to change a serious economic and social situation for the country. The Central South African Republic, in fact, is one of the poorest countries in the world, with a very low average life expectancy and a very high infant mortality rate. In addition, if we consider that in the last 20 years the inhabitants of the country have had to suffer 3 civil wars, then we understand well that the internal scenario is quite dramatic. Perhaps the introduction of a new economy made up of peer-to-peer exchanges in a trustless manner will revive the fortunes of the country. The transition process will not be easy if we think that in the Central African Republic the Internet penetration rate is 11% and only 14% of the population has access to electricity and less than 7% uses mobile phones.

Poverty figures in the Central African Republic

According to a UNICEF report dated January 23, 2021, "Thousands of children displaced by violence in the country" (the article is in Italian), the Central African Republic is in one of the largest humanitarian crises in the world. Those who pay the most for the consequences are the children:

  • Severe acute malnutrition among children under 5 increased by 16.4% over the same period last year
  • More than 380 serious violations of children's rights were recorded in the country between January and July 2020, more than 2.5 times the figure for the same period in 2019