FX.co ★ Central African Republic adopts bitcoin as legal tender

The International Monetary Fund (IMF) has commented on the acceptance of Bitcoin as legal tender by the Central African Republic. It became the second country, after El Salvador took the same step last year.

The adoption of bitcoin as legal tender in the Central African Republic (CAR) poses serious legal, transparency and economic policy challenges. IMF staff are helping authorities in the region and the Central African Republic deal with the new law.

The decision to legalize bitcoin took many by surprise, including the regional central bank, which manages the common currency used by five other countries.Bitcoin became legal tender after lawmakers voted unanimously to pass a law to legalize the world's largest cryptocurrency and other cryptocurrencies, according to a statement signed by Obed Namsio, chief of staff of President Faustin-Archange Touadera.According to the statement, the aim of adopting cryptocurrency as legal tender is to open up new opportunities for the Central African Republic.Bitcoin can now be used as legal tender alongside the Central African CFA franc, a currency managed by the Bank of Central African States (BEAC).The Central African Republic is one of the poorest countries, despite its vast reserves of gold and diamonds.However, only about 11% of the country's population has access to the internet. According to the World Bank, in 2020 more than 70% of the country's 5 million inhabitants lived below the international poverty line.