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Nearly 5 million people of the Central African Republic (CAR) can now use Bitcoin as Fiat currency in addition to the franc.
According to a report on Wednesday( April 27), The President of the Central African Republic Faustine-Archange Touadera signed the law, establishing a regulatory framework for the use of cryptocurrencies in the country as well as recognizing Bitcoin (BTC) as fiat currency. Obed Namsio, the president's secretary, said the move was aimed at making CAR one of the "boldest and most visionary" countries in the world.
#BREAKING Central African Republic adopts bitcoin as legal currency: presidency pic.twitter.com/wjxYWl7W2z
— AFP News Agency (@AFP) April 27, 2022
CAR has previously legalized the use of cryptocurrencies in the country's financial markets but does not include the use of BTC as fiat currency. Lawmakers unanimously passed the cryptocurrency bill introduced by Ministry of Digital Economy, Post and Telecommunications Justin Gourna Zacko.
This decision will put CAR on the list of rare countries that use Bitcoin as a cryptocurrency. In September 2021, El Salvador's Bitcoin Law went into effect, making digital assets the currency next to the U.S. dollar. The Latin American country is also preparing to establish the town of Bitcoin City funded by $1 billion worth of BTC bonds.
Heritage Fund's 2022 Economic Freedom Index, with a gross domestic product of about $2.4 billion, CAR is considered a "suppressed" economy. How accepting Bitcoin as fiat currency affects the people of this country remains unclear.
