The Central African Republic has approved the use of bitcoin as a medium of exchange. First in Africa, and second internationally, El Salvador has become the first country in the world to accomplish so.
The National Assembly of the Central African Republic passed a law legalising cryptocurrency, providing a regulatory framework, and accepting bitcoin as legal cash with a resounding YES vote. Thus, the Central African Republic has become the first nation on the continent to accept bitcoin as payment.
Government authorities have agreed on utilising bitcoin and another crypto to strengthen the Central African Republic’s economy, as well as leveraging technology to digitise the sector as a whole. As a result, it joins El Salvador in declaring bitcoin legal money and is likely to face international scrutiny.
According to Gourna Zacko and Calixte Nganongo, the ministers responsible for the digital economy and post services were responsible for the bill’s formulation. It’s not obvious what the long-term answers will be, but some politicians have suggested that investing in new technologies and cryptocurrencies is in the public interest.
In addition to declaring bitcoin legal money, a government may make use of a number of other advantages to stimulate the economy. Some essential procedures might be sped up and lowered in cost with the usage of smart contracts.
Can we expect other governments to recognise bitcoin as legal tender?
Following El Salvador’s lead, the Central African Republic now accepts bitcoin as legal money. Most current financial organisations and governments are wary of taking this position for fear of exacerbating macroeconomic problems. That much is clear, at least from the statements made by organisations like the World Trade Organization (WTO) and the International Monetary Fund (IMF).
A new era of digitization will be ushered in by the adoption of bitcoin by nations that have declared it legal money, according to those governments. El Salvador, which is pioneering this movement, has yet to show this, but it is still in its infancy.
El Salvador and the Central African Republic’s experiments will be a source of knowledge for other nations. Cryptocurrency and its daily usage will likely be better accepted if most nations declare it legal tender. In Colombia, for example, there are more crypto ATMs.
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