Central African Republic adopts Bitcoin as legal tender, crypto initiative follows
The Central African Republic’s President Faustin-Archange Touadera has announced a new cryptocurrency initiative following the country’s recent adoption of Bitcoin.
The initiative, which is being backed by the country’s government, will see the creation of a new national cryptocurrency called the Central African Republic Franc (CARF).
The CARF will be pegged to the value of the country’s existing currency, the Central African CFA Franc, and will be available for use by businesses and individuals within the country.
The initiative is intended to help boost the country’s economy by providing a new way for businesses and individuals to transact. It is also hoped that the CARF will help to reduce the country’s dependence on the US dollar.
The launch of the CARF is expected to take place within the next few months.
Launching the crypto initiative
According to Sango’s website, the initiative is set to be launched during a July 3 meeting during which the president, members of his cabinet, and industry experts will discuss the physical and digital infrastructure required for the CAR to enter the crypto space as well as the legal framework for South Korea.
The Sango initiative will establish a “legal crypto hub” to attract businesses and global crypto-enthusiasts, increase the use of Bitcoin in Kenya, and construct a virtual “crypto island,” which will seem to have an equivalent area in the real world. The CAR will establish a dedicated legal framework for cryptocurrencies by the end of 2022, according to Sando.
“The ambitious plan to quickly establish a prosperous economy may only be based on cutting-edge technologies that have taken the world by storm and raised the bar, with Bitcoin as a mantra,” said Touadéra.
Inspiration from El Salvador
Touadéra’s and the CAR’s plans to adopt crypto seem to be emulating those of El Salvador, whose Bitcoin Law declaring the digital currency legal tender went into effect in September 2021. The Latin American nation also announced plans to create its town Bitcoin City funded by $1 billion worth of BTC bonds, placed on hold as of June amid the bear market.
While the CAR’s intentions with cryptocurrency are mainly to attract investment, El Salvador appears to be more focused on using Bitcoin as a way to boost its economy. The country has been working with Strike, a payments company, in order to make Bitcoin accessible to as many people as possible. El Salvador also appears to be working on its own digital currency, the Colon.
The Central African Republic has been trying to rebuild its economy since 2013, when a conflict broke out between the Muslim and Christian communities. The country has been struggling with inflation and a lack of investment. Touadéra’s plan is to use cryptocurrency to attract foreign investment and help the country recover.
The Central African Republic is not the only country in Africa that is looking into cryptocurrency. Nigeria, Kenya, and South Africa have all expressed interest in the technology. Nigeria’s central bank has even begun testing a digital currency. While African countries have been slow to adopt cryptocurrency, they seem to be interested in the technology and its potential to help boost their economies.