The Central African Republic has just become the second country in the world to accept Bitcoin as legal tender. It is, according to United Nations data, of one of the poorest countries in the world.
Central African Republic, where only 4% of the population has access to the Internet, has just approved the use of Bitcoin as legal tender
However, it possesses great natural wealth in diamonds, gold and uranium. Central African Republic has been engaged in a civil war for more than a decade in which Russia, an ally of the African government, has sent groups of mercenaries to fight the rebel forces.
The deputies of the Central African country have voted “unanimously”, according to the country’s presidency, in favor of the adoption of Bitcoin as the official currency. Its aim, the authorities point out, is to put Central African Republic “on the map as a one of the most visionary countries and innovative countries in the world.
The first government to take this measure was El Salvador in September 2021. It was a decision highly questioned by economists and by other governments. Even the International Monetary Fund warned that this decision could increase the risk of financial instability worldwide and favor the activity of criminal groups, which use these assets to launder their illicit proceeds.
According to data from WorldData, in 2019 only 4% of the citizens of Central African Republic had access to the Internet. Until now, the only legal currency in the country was the CFA franc, used in several African countries that were French colonies.
In fact, this move by the Central African government has been interpreted as a gesture with which to draw closer to Russia. By reducing its dependence on the CFA franc, an asset controlled from Paris, Russia may in turn have greater leeway to invest and influence the African country’s finances.