The central African Republic legalizes bitcoin

The presidency of the Central African Republic has announced bitcoin as an official currency on Wednesday; the first country in Africa and second in the world to do so.

The central African Republic is rich with gold and diamonds, but it is still one of the world’s poorest and undeveloped countries and has been under the shackles of violence for years.

A bill governing cryptocurrency use was unanimously adopted by parliament last week. The presidency supported the bill with the aim of improving the conditions of Central African citizens. It is a decisive step to opening up new opportunities for the country.

The Central African Republic is among the six nations that use the Central African CFA franc, BEAC (a regional currency governed by the Bank of Central African States). Two former ministers of the country last week expressed concern related to the adoption without the guidance of BEAC and called it a “serious offense.”

The BEAC learned about it with the public of the enactment of a new law on cryptocurrency in the Central African Republic. El Salvador made bitcoin a legal tender last year and became the first country in the world to do it. Still, the rollout got hampered by skepticism, and it postponed a proposed bitcoin bond in March amid global market turbulence.

African governments took a varied approach to regulating cryptocurrencies and blockchain technology. Nigeria’s central bank did not allow local banks to work with cryptocurrencies last year before launching the eNaira, its own digital currency.

South African regulators have been exploring cryptocurrencies and other blockchain technology regulations, and Tanzania’s central bank last year was working on a presidential directive to prepare for cryptocurrencies.