The Central African Republic has become the second country in the world to adopt bitcoin as official currency, after El Salvador took the same step last year.
Lawmakers in the CAR’s parliament voted unanimously to pass a bill legalizing bitcoin and other cryptocurrencies, according to a statement from the presidency.
Bitcoin will be considered legal tender alongside the regional Central African CFA franc.
Obed Namsio, chief of staff to President Faustin-Archange Touadera, called the move “a decisive step toward opening up new opportunities for our country,” according to Reuters.
The CAR is rich in diamonds, gold and other valuable minerals, but ranks as one of the world’s poorest and least-developed countries.
Roughly 71% of CAR’s 5.4 million inhabitants were living below the international poverty line in 2020, according to the World Bank.
The country, which is landlocked in the heart of Africa, has been gripped by political instability and violence for years.
“The big question is who the cryptocurrency ruling is for,” David Gerard, an independent author who has followed crypto closely over the years, told CNBC.
“Internet coverage in the CAR is 11%. Perhaps the government has been told that this will bootstrap payments in the country, but it’s not clear how.”
The move to consider bitcoin legal tender received praise from the crypto community, and was hailed as another step toward mainstream adoption of cryptocurrencies.
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