The Central African Republic Passes Bill To Regulate Cryptocurrency Use

According to reports, the new crypto law would allow the Central African Republic citizens to pay their taxes in cryptocurrency and businesses to accept cryptocurrency as payment.

The Central African Republic (CAR) has become the center of a hot buzz in the crypto world, with various reports claiming that it, like El Salvador, is adopting Bitcoin (BTC). Contrary to popular belief, the African country has not adopted Bitcoin as legal tender; instead, it has reportedly legalized the use of cryptocurrencies in financial markets.

The cryptocurrency bill was introduced on April 21 by Justin Gourna Zacko, Minister of Digital Economy, Post, and Telecommunications, and was unanimously approved by lawmakers in parliament despite opposition protests, according to RFI.

The crypto law aims to create a favorable environment for the region’s inclusive growth of the crypto sector. Minister Zacko also emphasized the growing difficulties in sending money from the African country, and he believed that the adoption of cryptocurrency would aid in resolving the issue.

According to reports, the new law would allow traders and businesses to make cryptocurrency payments, as well as allow for tax payments in cryptocurrency through authorized entities.

The new crypto law also includes provisions for offenders who violate the law. According to one report, offenders could face up to 20 years in prison and fines ranging from 100,000,000 to 1,000,000,000 Financial Community of Africa (CFA) francs.

Gloire, the founder of Kiveclair, a Bitcoin Beach-inspired refugee project in the Congo, explained the new law in detail, saying:

“The real implication for people is that they can now have access to currencies other than the FCFA (this is the local currency) while being protected by law, and transfer money at a lower cost. Above all, they can carry out financial transactions without banks (while being protected by law).”

The CFA franc, which is pegged to the euro and is printed in France, is used by 14 countries, and its monetary policy is controlled by Western powers. While the official peg was set at one euro to 655.96 CFA francs, the fiat has been losing value for some time. As a result, Bitcoin and other cryptocurrencies are gaining popularity in countries grappling with a national economic crisis.