Bitcoin (BTC) continues to gain global acceptance despite high volatility and price corrections this year in 2022. According to recent reports, the Central African Republic has joined El Salvador as the second country to recognize Bitcoin (BTC) as legal tender.
Changepeng Zhao, the CEO of Binance, also tweeted about it.
This means that Bitcoin shall now be accepted as a form of payment thereby making the Central African Republic the first country on the continent to do so. According to Forbes Monaco, the bill was unanimously supported by the National Assembly, putting Bitcoin (BTC) at the center of the country’s economic recovery.
Calixte Nganongo, the finance and budget minister, and Gourna Zacko, the minister of the digital economy, post services, and telecommunications, together submitted a draft law that recognizes Bitcoin as a legal currency and lays out the legal framework for cryptocurrency regulation. As reported by Forbes Monaco,
“The application of the legal-tender implies the acceptance of cryptocurrencies as a legal means of payment established through specific legislation. With cryptocurrencies, the Central African Republic is moving towards a new, avant-garde path of development and economic performance, a dynamic field which is popular among investors around the world and ever-present as full-fledged assets in the portfolios of the world’s largest financial players”.
Transforming CAF’s Digital Infrastructure
The recent development will pave the path for the Central African Republic’s digital infrastructure to be transformed. It will also give a big push to the use of blockchain technology innovation which is crucial for the project’s implementation.
The CAF’s opposition parties have also backed the decision, hoping that digital assets will benefit the country’s larger population. The law has received support from the parliamentary groups Mouvement Coeurs Unis (MCU) and Mouvement National des Indépendants (MOUNI).
Countries that are under increasing economic pressure are seeing Bitcoin and cryptocurrencies as a means to get out of their economic debts. It looks like the Bitcoin adoption snowball effect has just started.