The Central African Republic (CAR) has become the second country in the world to adopt Bitcoin as a legal currency, reported The BBC.
On Wednesday, lawmakers from the central African country unanimously adopted a bill to make Bitcoin legal tender alongside its CFA franc and legalized the use of cryptocurrencies.
President Faustin Archange Touadera signed the bill into law, his chief of staff Obed Namsio said in a statement. He said the CAR is the first country in Africa to adopt Bitcoin as legal tender.
“The president supports this bill because it will improve the conditions of Central African citizens,” Namsio told Reuters. “This move places the Central African Republic on the map of the world’s boldest and most visionary countries.”
In the statement, he said the decision to adopt Bitcoin as a legal currency is a decisive step taken toward opening up new opportunities for the country.
The Central African Republic is among the six countries that use the Central African CFA franc, a regional currency governed by the Bank of Central African States (BEAC).
However, due to the high volatility of the digital currency, some are wary of the move.
Two of the country’s former CAR prime ministers last week signed a letter expressing concern about the adoption of Bitcoin without guidance from the BEAC, calling it a “serious offense”.
El Salvador adopted Bitcoin as legal tender last September. But the move was heavily criticized by the International Monetary Fund (IMF). It warned that the adoption of a cryptocurrency as legal tender, however, entails large risks for financial and market integrity, financial stability, and consumer protection.
Notably, the CAR is one of the world’s poorest and least-developed countries and has been gripped by rebel violence for years. In 2013, the country plunged into a civil war that developed largely along sectarian lines. The country is currently under a financial reform program monitored by the IMF.
