The country is now also the first African country to adopt bitcoin as legal tender.
In September of last year, El Salvador became the first country in the world to introduce bitcoin as legal tender.
Reading: Country accepting bitcoin
According to a government statement, President Faustin Arcangel Touadera validated the law on Wednesday. Tax contributions can also be paid in cryptocurrencies through government-recognized platforms.
The Central African Republic is one of six nations that use the Central African CFA franc, a regional currency governed by the Bank of Central African States (BEAC).
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“Cryptocurrencies, including bitcoin, are now considered an official currency in the car,” Albert Mokpeme, spokesman for President Faustin-Archange Touadera, told Bloomberg.
“By legalizing the use of bitcoin, Car hopes to attract investors,” he said, adding that its use would facilitate money transfers that “can sometimes be complicated in our country.”
Two of the country’s former prime ministers last week signed a letter expressing concern about adopting bitcoin without guidance from the beach, calling it a “serious offence”.
the central african republic, which has reserves of gold and diamonds, is one of the poorest countries in the world. years of violent conflict and the political crisis that gripped the country ahead of the December 2020 presidential election have severely impacted the economy and damaged relations with its international partners, leading to delays in aid distribution vital and some partners suspending budget support.
Many officials and civil society groups, including citizens in solidarity with the Central African Republic, have protested against this law, saying it puts national sovereignty at risk.
Internet penetration in the landlocked nation is about 11% of the 5 million population, according to datareportal, an online data portal.
African governments have taken a varied approach to regulating cryptocurrencies and blockchain technology.
Nigeria’s central bank banned local banks from dealing with cryptocurrencies last year before launching its own digital currency, the enaira.
South African regulators have been exploring the potential regulation of cryptocurrencies and other blockchain technologies, with Tanzania’s central bank saying last year that it was working on a presidential directive to prepare for cryptocurrencies.