Things look bright for Bitcoin and other Crypto
The Central African Republic made bitcoin a legal tender. Cryptocurrencies’ impact can be felt around the globe. Lawmakers in Panama’s National Assembly passed a major bill to regulate the use and commercialization of crypto assets in the Central American county on April 28.
Legalizing Bitcoin as a Legal Tender
The bill enables private, and public use of assets and will allow payments of taxes with cryptocurrencies. The bill passed to President Laurentino Cortizo to get signed. The Central African Republic adopted bitcoin as a legal tender on April 27. The National Assembly of the country unanimously passed the bill, allowing President Faustin-Archange Touadera to sign it into law.
The country will use bitcoin as the national currency like the Central African CFA franc_ a regional currency regulated by the Bank of Central African States (BEAC) used in six African countries: Cameroon, Chad, Congo, Equatorial Guinea, and Gabon.
This bill makes the Central African Republic the first country in Africa to legalize bitcoin and the second after El Salvador in the world. Moreover, the Cuban central bank issued regulations on April 26 for virtual asset service providers.
The bank authorization requires a license to use cryptocurrencies.
A Financial Havoc?
The bank would consider the legality, socioeconomic interest, and project characteristics of requests before granting the license, which would be valid for one year. This is another unstable and undemocratic nation legalizing Crypto and awaiting financial mayhem. The decision provoked various reactions on social media. BTC has come so far in such a short amount of time. The world is waking up to the massive potential of bitcoin. The narrative is shifting, but only 11% of people in the Central African Republic have internet access.
In January, the International Monetary Fund’s Executive Board urged El Salvador to change the legal tender status of bitcoin, citing “financial stability, financial integrity, and consumer protection” as the concerns.
The report stated that the adoption entails significant risks and can create contingent liabilities.
Moreover, Brazil’s Senate approved a bill on cryptocurrencies in a plenary session recently and paved the way for official regulation of Crypto in the world’s ninth-largest economy. The bill allows Brazil’s executive branch to regulate virtual assets. But the bill is yet to decide if Brazil’s executive bank, the Securities and Exchange Commission, or an entirely new body will regulate the industry.