The Central African Republic (CAR) has become the second country to adopt Bitcoin as its national currency, following the adoption of el salvador of cryptocurrency last year.
CAR Government Says A Bill To Adopt Bitcoin Has Been Unanimously Approved By The Country’s Parliament, Reports Reuters Y bbc news. (Although former Prime Minister of the Central African Republic Martin Ziguele complained the bill was passed “by proclamation”). CAR President Faustin-Archange Touadera’s office said the move would “improve conditions for Central African citizens” and distinguish CAR as “one of the most daring and visionary countries in the world.”
However, geopolitical analysts and financial experts are confused for the motivations of the movement. CAR is a landlocked nation that is rich in resources such as gold and uranium, but remains one of the poorest countries in the world. It has been wracked by civil war since 2012, and only 11 percent of the 4.8 million inhabitants have access to the Internet. It is one of six states in Africa that uses the Central African CFA franc as its currency, “a regional currency backed by France and pegged to the euro.” according to law firm Baker McKenzie.
Some have suggested that CAR’s adoption of Bitcoin is an attempt to undermine the CFA franc and offer a rebuke to the country’s former colonial power, France. “It’s a big middle finger for the French economic system,” Chris Maurice, CEO of cryptocurrency exchange Yellow Card, which focuses on users in Africa. said Reuters.
Others say the move could be linked to CAR’s close relationship with Russia. CAR was one of the few nations that opted for to refrain of a United Nations vote condemning the Russian invasion of Ukraine, while the country’s government has been condemned for deploying mercenaries from Russia’s Wagner Group to fight rebel groups.
“The context, given systemic corruption and a Russian partner facing international sanctions, fosters suspicion,” analyst Thierry Vircoulon of the French Institute of International Relations told the AFP news agency (via bbc news).