The central African Republic has become the second country to accept bitcoin as legal tender. The impoverished African country is thus following El Salvador, which adopted cryptocurrency as its official currency last September.
The parliament of the Central African Republic unanimously approved a bill that would establish bitcoin as the official currency alongside the CFA franc. Trading in cryptocurrencies will also be legalized.
According to a spokesman for the President of the Central African Republic, the country is “putting itself on the map as one of the bravest and most progressive countries globally”. However, the question is whether many people can use cryptocurrency because the country is the second poorest country, according to the United Nations. This is partly due to a civil war that has lasted almost nine years.
When El Salvador started accepting bitcoin, that country was heavily criticized by the International Monetary Fund (IMF). That organization called the decision dangerous for financial stability and consumer protection.