Central African Republic Looks for ‘Quick Wins,’ Becomes Second Country to Adopt Bitcoin

The government’s economic recovery plans prioritize policy that will give citizens immediate relief

article-image

Central African Republic President Faustin-Archange Touadera | Source: Shutterstock

share

key takeaways

  • One of the poorest countries in the world has followed El Salvador in adopting bitcoin as legal tender
  • The government has been focused on “quick wins” to help improve citizen’s lives and economic situations

The Central African Republic became the second country to adopt bitcoin as legal tender Wednesday — even as the world’s first cryptocurrency has undergone bouts of intense volatility.

Lawmakers in the Central African Republic, which has a population of six million, adopted the bill “unambiguously” before President Faustin-Archange Touadera signed the measure into law Wednesday, according to a statement from Touadera’s chief of staff, Obed Namsio. 

“The adoption of bitcoin as official money represents a decisive step toward opening up new opportunities for our country,” Namsio said in the statement, translated from French.

The move comes the day after the country revealed plans for a legal framework around the use of cryptocurrencies. 

The legislation focuses on defining how citizens can interact with digital assets, Finance Minister Herve Ndoba said, according to a Bloomberg report. He added that the Central African Republic is not trying to mimic El Salvador, which became the first country to adopt bitcoin as legal tender in September 2021.

The Central African Republic — one of the poorest countries in the world, according to the World Bank — has faced further economic decline in pandemic years. The International Monetary Fund approved a seven-month staff program in December to promote economic recovery, increase GDP and improve the government’s fiscal standing.

The local government has also expressed interest in changing the country’s economic trajectory, with an emphasis on passing immediate measures that can help improve the lives of citizens, Ndoba said. 

“The population is living in this fragile situation every day, so we have to bring them on the table so that we renew our social contract with them,” Ndoba said during a World Bank-sponsored interview this month. “We should have quick wins so that we can show the population through the emergency plan, we can do what is necessary in order to secure livelihoods.” 

The government has yet to detail its cryptocurrency infrastructure or regulations around bitcoin’s use as legal tender. El Salvador launched state-sponsored crypto wallets, a program that citizens were quick to criticize.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders