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- The adoption of bitcoin as a legal tender in the Central African Republic has raised several questions by some financial analysts across Africa, who questioned this move. CAR is the only state other than El Salvador, that has legal tendered the bitcoins
The adoption of bitcoin as a legal tender in the Central African Republic has raised several questions by some financial analysts across Africa, who questioned this move. CAR is the only state other than El Salvador that has legal tendered bitcoins. It is purported to promote dubious transactions, at a time when the regime is under fire from the UN, a section of the experts feel.
On 28 April, President Faustin Archange Touadéra made the surprise announcement that the parliament of the very poor central African country had passed a law “governing all transactions” in cryptocurrencies and making bitcoin a “reference currency” alongside the CFA franc. CAR, which has 5.5 million inhabitants, mostly poor, would find the usage of the complicated currency very difficult to cope with.
Also Read:
https://trendsnafrica.com/the-central-african-republic-adopts-bit-coin-as-official-currency/
https://trendsnafrica.com/car-civil-society-worried-about-possible-amendments-to-the-constitution/
Even among the few businessmen likely to have the means, knowledge and technology to use the crypto currency, have taken by surprise by the introduction of the currency. Several people said that they did not know what bitcoins are. At the same time, the government sources maintained that they would educate the people about bitcoin. Analysts however, maintained that the country did not have the infrastructure and adequate knowledge to embark on this adventure. There is no cybercrime unit to guarantee security of transactions.
Many pointed out that in a poor country like DRC, there are many priorities to be addressed such as security, energy, access to water, internet, building roads and the list is very long. Introduction of a new currency should be the least priority of the central African country. Analysts also maintained that the country should have adopted more stable currency and not the mercurial and unstable bitcoins, the operations are complicated and complex for the ordinary people. Bitcoins operations are excessively volatile. DRC has surprised everyone by the incongruity of legislation allowing the use of digital currency in a state at war and almost bankrupt.
