Хабарландыру

Obed Namsio, the Chief of Staff in the President’s office, shared the news, stating that President Faustin-Archange Touadéra signed the law, placing CAR among the world’s most progressive and visionary countries.

Following the announcement, Martin Ziguele, the leading opposition figure and former prime minister of the country, voiced his opposition. He argued that making Bitcoin legal tender could weaken the use of the CFA franc. Ziguele criticized the bill’s approval by proclamation, which led some legislators to consider challenging it in the constitutional court. He also raised concerns about the potential beneficiaries of the decision.

Concerns about the CFA Franc

The CFA Franc is a regional currency used by six countries in Central Africa, including the Republic of Congo, Chad, Gabon, Equatorial Guinea, and Cameroon. It is backed by France and pegged to the euro. The currency is managed by the Bank of Central African States (BEAC), which is required to maintain at least 50% of foreign reserves with the French Treasury. This arrangement has been criticized by many economists, who argue that it stifles the region’s economic development.

Thierry Vircoulon, an expert on Central Africa at the French Institute of International Relations, speculated that the CAR’s adoption of Bitcoin might be linked to its growing ties with Russia. He pointed out that with rampant corruption in the country and Russia’s international sanctions, this move could be a way for CAR to circumvent these sanctions and foster distrust.

IMF’s Warning

El Salvador became the first country to adopt Bitcoin as legal tender on September 7, as reported by CryptoChipy.

The International Monetary Fund (IMF) has heavily criticized this move, warning of potential financial challenges, including risks to monetary stability, fiscal policy, and consumer protection. The IMF also raised concerns about the issuance of Bitcoin-backed bonds, with many financial regulators sharing similar concerns. Critics argue that the anonymity of cryptocurrency transactions makes it an ideal tool for illicit activities, including money laundering and trafficking.

India had also banned crypto exchanges in 2018, though the Supreme Court overturned the ban two years later. The country now plans to introduce digital rupees.

In September, China’s central bank declared that all financial transactions, including cryptocurrency activities, were illegal. The volatility of Bitcoin’s price has also raised concerns about its reliability as a store of value, and its slow transaction times make it impractical for small purchases.

The Future of Cryptocurrencies in Various Nations

Despite ongoing skepticism, there is growing acknowledgment of the potential of digital currencies as a versatile financial tool. Major central banks in countries like the USA and India are exploring the possibility of introducing virtual currencies within a regulated framework.

The Central African Republic has faced instability since gaining independence from France in 1960 and currently ranks 188th out of 189 countries in the United Nations Human Development Index, which measures prosperity.