The new Central African law seeks to create a favorable environment for cryptocurrencies in the financial sector. Some congresspeople oppose it, arguing that they contribute to money laundering and fraud, among other illicit activities.
Reports on social networks indicate that the Central African Republic (CAR) has adopted Bitcoin (BTC) as legal tender. For that reason, the country is at the center of the buzz in the crypto world. However, various sources from the African continent have confirmed a different reality.
The National Assembly of the African country recently unanimously approved a bill that contemplates the regulation of cryptocurrencies. For example, the new law controls the use of Bitcoin in the territory, according to the LeTsunami media outlet.
The Minister of Digital Economy, Post and Telecommunications, Justin Gourna Zacko, issued that draft law. The official explained that the document establishes a favorable environment for the financial sector that meets the needs of that sector. In addition, it aims to provide the country with a legal framework that governs cryptocurrencies and the businesses using them.
The official also stated that investing in those digital assets offers many advantages to millions of users. He also pointed out that nobody should lose sight of the volatility in that market.
Curiously, the cabinet member referred to the ability not to depend on central banks. His position on the subject was very different from what other governments usually state.
Gourna Zacko said that the Central Bank would no longer be in control with the arrival of cryptocurrencies. He explained that they could send money to investors in currencies like the US dollar, the euro, and the naira. He highlighted that crypto assets offer advantages and that the legal framework should allow all Central Africans to benefit.
The Country Has Not Adopted Bitcoin as Legal Tender
The report from LeTsunami does not mention the adoption of Bitcoin or any other cryptocurrency as legal tender. However, media like Forbes Monaco and many bitcoiners said that the Central African Republic had taken the path of El Salvador.
Although that is not true, some local congresspeople have expressed their disagreement with the approved law. They argue that cryptocurrencies facilitate money laundering and tax fraud, among other crimes, as many regulators and governments do worldwide.
The Central African Republic has an area of about 623 square kilometers and barely over 5 million inhabitants. Besides having a tense political situation, it is also one of the poorest countries. For that reason, its citizens could benefit from cryptocurrencies like Bitcoin, as they would not depend on governmental policies.
Due to their small and failing economies, Africans have sought alternatives like Bitcoin for years. That is evident in the high trading volumes of cryptocurrencies in P2P markets. Unlike in the Central African Republic, the governments of other countries have not always accepted BTC.
For example, the Nigerian government had approved a ban on Bitcoin and other cryptocurrencies, which they later canceled. Then they announced the creation of their central bank digital currency (CBDC), the eNaira, following the trend of most governments worldwide.
By Alexander Salazar
