Tuesday, April 16, 2024

Central African Republic is the 2nd in the world to have Bitcoin as its official currency


2 min read

Poor African country without access to the sea and with an Internet penetration of only 11% became the second bitcoin oasis in the world after their parliament accepted this cryptocurrency as official

Bitcoin has become a parallel official state currency in other countries, After El Salvador, where the idea was “pushed” by young progressive President Nayib Bukele, bitcoin will become the official currency and means of payment in Central African Republic. This country is located between Cameroon, Chad, Sudan, South Sudan, DR Congo, and the Republic of Congo, ie it has no access to the sea and has a population of about 6 million.

Of those 6 million, only about 11% of the population use the Internet (the national domain is .cf). It is a fairly poor country, located in the bottom 10% of the world scale in terms of gross national income, but also a country that has great natural resources in the form of diamonds, gold, and uranium.

The official currency of the Central African Republic is the CFA franc, which is also used in Chad, Equatorial Guinea, Gabon, Cameroon, and the Republic of Congo. A few days ago, this status in the Central African Republic has – bitcoin.


A political move?
The proposal was officially accepted in the parliament, and the president of Faustin-Archange Touader said that the introduction of bitcoin as another national currency will open new opportunities and improve the lives of residents. “This move puts the Central African Republic on the map of the world as one of the bravest and most visionary countries,” he said.

And while many agree that this move does not make much sense from an economic and monetary point of view, it seems to be primarily a political message. The introduction of bitcoin is interpreted as the intention of the rulers to diminish the importance of the CFA franc, which has its roots in the time when this African region was a French colony.

CFA in the name of the currency means “Communauté française d’Afrique” (French Community of Africa), and its value is linked to the euro – so with the introduction of bitcoin, this country is trying to move away from French influence.







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