The Central African Republic adopts Bitcoin as an official currency
The Central African Republic has become the second nation in the world to adopt Bitcoin as an official currency.
Following the pioneering El Salvador, which famously made Bitcoin an official currency in 2021, the Central African Republic expects that this decision will help it combat poverty in what is one of the world’s poorest nations.
However, the decision has not been without controversy. The Central African Republic was one of six nations that use the Central African CFA franc as a currency, and the nation adopted Bitcoin without first seeking the guidance of the bank that manages the currency, the Bank of Central African States (BEAC).
“The BEAC learned at the same time as the public of the enactment of a new law on cryptocurrency in Central African Republic,” a BEAC spokesman said to Reuters journalists. This news has apparently been such a surprise that the bank has not had the opportunity to form an official response.
El Salvador, for its part, has not had a smooth transition to Bitcoin. While the interest has been there from crypto enthusiasts, domestically and abroad, the country has had to weather fierce criticism from the IMF and other bodies.