The Central African Republic followed El Salvador in making bitcoin its official currency.
What just happened? El Salvador is no longer the only country in the world where bitcoin is the official currency. The South American nation has been joined by the Central African Republic (CAR), which has endorsed cryptocurrency as legal tender.
A bill regulating the use of bitcoins was unanimously passed by Parliament last week. Reuters.
Although the CAR is rich in natural resources such as gold and uranium, the CAR is one of the world’s poorest countries and has been involved in a civil war since 2012. It currently uses the French-backed CFA franc as its currency, as do six other former French colonies in Africa.
What is particularly strange about the CAR, having adopted bitcoin as its official currency, is that only 11 percent of its population of 4.8 million people have access to the Internet. edge.
Former CAR Prime Minister Martin Siegele, now an opposition MP, said the bill, signed by President Faustin Arcange Touadéra, was approved by “declaration”.
The move is speculated to be related to the CAR’s close relationship with Russia — it was one of 35 countries that abstained from a UN vote condemning Russia’s invasion of Ukraine — as well as undermining the CFA and France.
“The context, given systemic corruption and international sanctions against the Russian partner, is indeed suspicious,” said French analyst Thierry Virculon. said news agency AFP.
#BitcoinHighlights | @Blockstream and @bitfinex help El Salvador offer $1 billion #Bitcoin connection to create #BitcoinCity. The IMF was not happy.
Read more -> https://t.co/9GpN0Gj3Z8
— James Coe (@jamescaw) April 29, 2022
El Salvador made history last year when it passed the bitcoin law in June and the cryptocurrency became legal tender in September. The government faced numerous criticism from citizens and organizations over the decision, including the World Bank, which refused to help with the implementation, and the International Monetary Fund (IMF), which urged the country to move away from bitcoin as its official currency. But El Salvador is not giving up on crypto or its plans to create Bitcoin City.
