The Central African Republic has adopted Bitcoin as legal tender, becoming the second country in the world to do so after El Salvador. The law was passed unanimously, making the republic the first country in Africa to adopt cryptocurrencies as legal tender.
On Wednesday, the presidential administration announced that the Central African Republic has accepted Bitcoin as legal tender. Legislators unanimously passed a bill that made Bitcoin legal tender alongside the CFA franc and legalized the use of cryptocurrencies, reports France24. The new bill states that cryptocurrency exchanges are not liable to tax.
The new law was signed by President Faustin Archange Touadera, said his chief of staff, Obed Namsio. The CAR became the first country in Africa to accept Bitcoin as legal tender.
“This move places the Central African Republic on the map of the world's boldest and most visionary countries,” he declared.
The CAR is one of the poorest nations on the planet. The country is in civil conflict and its economy is overly dependent on mining, much of which is informal.
Martin Ziguele, a former CAR prime minister who is now an opposition MP, complained the bill was approved “by proclamation” and some legislators intend to file suit against it at the Constitutional Court.
“This law is a way of getting out of the CFA franc through a means that guts the common currency,” said Ziguele. “It (the law) isn't a priority for the country,” he said. “This move raises the question: who benefits from it?”
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