Following El Salvador, the Central African Republic has become the second country to recognize bitcoin as a legal tender.
Bitcoin was accepted as legal money alongside the CFA franc in the C.A.R., which has a population of 4.83 million.
The National Assembly overwhelmingly passed the bill, which President Faustin Archange Touadera signed into law, according to a statement.
The C.A.R. will be “on the map of the world’s boldest and most visionary countries,” according to the president’s office.
“With cryptocurrency, there is no more control of the Central Bank,” said Gourna Zacko, minister of the digital economy, ” you have your money, you send an investor for a business, you receive it in any currency, you can dispose with it in dollar, euro, CFA or Naira.”
El Salvador was the first country in the world to make bitcoin a legal money just under a year ago, allowing residents to pay for products, services, and taxes.
Many other countries have been keeping a close eye on the Central American country to see if bitcoin might provide economic benefits like avoiding hyperinflation and lowering dependency on the US dollar as the global reserve currency.
According to World Bank data, the Central African Republic would encounter more obstacles than El Salvador in promoting bitcoin use, owing to fewer than 20% of the population having access to the internet.
To spend and receive bitcoin, you’ll need an internet connection, which you may get through a smartphone.
Moreover, bitcoin may be kept in cold storage — which is a type of offline storage.
