The Central African Republic is the second country to adopt Bitcoin as its official currency, after El Salvador, which made the same decision last year.
In an official statement, the government highlights the opening of new opportunities in the country.
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Corresponding Reutersthe decision was approved by Parliament and supported by the country’s President, FaustinArchange Touadera.
The decision surprised geopoliticians and financial market experts. The Central African Republic is one of the poorest countries in the worlddespite the gold and uranium based economy, and has been suffering from a civil war since 2012.
According to DataReportal estimates, with a population of 4.8 million, only 11% have internet access, about 550 thousand people. Also, only 14% have access to electricity, while less than half own a cell phone. Residents of the capital, Bangui, didn’t understand the decision and didn’t even know what a bitcoin is when asked, as most of them only use cash.
Experts believe the government’s decision may have several reasons. Among them, the adoption of cryptocurrency is seen as a way to eliminate from the local economy the Central African CFA franc, a regional currency used by six countries and administered by the Bank of Central African States (BEAC) and attached to the euro is coupled.
With the decision, the Central African Republic would reduce the influence of Europe on its economy, particularly France, which has a long history with the nation having ruled the country as a colony since the late 19th century.
Others claim the initiative came from CAR’s close ties with Russia. In a vote on sanctions against the Russian land for its invasion of Ukraine, she chose to abstain. In addition, the African nation uses Russian Wagner Group mercenaries against local rebels.
In March it was revealed that Russia is considering selling oil and gas for bitcoin to avoid sanctions against invading Ukraine.
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