May 28, 2022

Mawazo Writing Africa

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Central African Republic adopts bitcoin as legal currency – VIDEO

The Central African Republic has adopted bitcoin as legal tender, the President’s Office announced on Wednesday, becoming the second country in the world to do so after El Salvador.

Legislators unanimously passed a bill suppose the Bitcoin legalizes tender alongside the CFA franc and legalizes the use of cryptocurrencies.

President Faustin Archange Touadera signed the measure into law, his chief of staff Obed Namsio said in a statement.

The CAR “is the first country in Africa to adopt Bitcoin as legal tender,” Namsio said.

“This move places Central African Republic on the map of the boldest and most visionary countries in the world,” stated er.

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But a leading opposition figure challenged the vote, saying the move was aimed at undermining the use of the CFA franc.

The Central African Republic is one of the poorest and most troubled nations on the planet, locked in a nine-year-old civil war and with an economy heavily dependent on mineral extraction, much of which is informal.

The text of the new legislation encompasses the use of cryptocurrencies and those who use them, in online commerce, “smart contracts…through blockchain technology” and “all electronic transactions”.

Cryptocurrency exchanges are not taxable, she adds .

Martin Ziguele, a former prime minister of the Central African Republic who is now an opposition MP, complained that the law was adopted “by proclamation” and some lawmakers intend to take legal action against it in the Constitutional Court.< /p>

“This law is a way to get out of the CFA franc by means that core the common currency,” Ziguele said.

“That’s it (that law) is not a priority for the country,” he said. “This move begs the question: who will benefit?”

The Central African Republic is one of six Central African countries that share the CFA franc – a regional currency backed by France and affiliated to the euro is coupled. Other members include Cameroon, Chad, Republic of the Congo, Gabon and Equatorial Guinea.

Concerns

El Salvador became the world’s first adopter of the groundbreaking virtual currency on September 7.

Below that, citizens of the Central American country were allowed to use the digital currency — along with the US dollar, which has been the official currency for two decades — to purchase goods or services through a cyber wallet app.

< p>The introduction was heavily criticized by the International Monetary Fund (IMF).

He warned of “major risks associated with the use of Bitcoin for financial stability, financial integrity, and consumer protection” and with the issuance of Bitcoin-backed bonds.

Many regulators share these concerns, and other critics say anonymized remittances using crypto are a perfect tool for human traffickers and money laundering.

India has 2018 crypto transactions effect iv, only for the country’s top court to lift the ban two years later.

China’s central bank outlawed all financial transactions involving cryptocurrencies in September.

Large price fluctuations make bitcoin a store of value risky and long transaction processing times make it risky impractical for small purchases.

However, there is also recognition for the usefulness of digital currencies as a flexible monetary tool. Major central banks are exploring the possibility of setting up a virtual currency in a regulated environment.

Troubled Country

The Central African Republic has experienced a few moments of peace since independence by France in 1960, it ranks 188th out of 189 countries in the UN’s Human Development Index, a measure of prosperity.

In 2013, the country plunged into a civil war that developed largely sectarian lines.< /p>

The conflict eased after France intervened militarily and elections were held, which Touadera won despite armed groups dominating most of Central African Republic territory for years.

2020 A coalition of rebels advanced into the capital, Bangui, threatening to overthrow Touadera as fresh elections loomed.

Russia dispatched paramilitaries to repel the threat, and then much of that of rebels to retake held territory.

< p>The activists are described by Bangui as military advisors but as mercenaries by France, the UN and others – the Kremlin-backed Wagner group accused of abuse.