The Central African Republic become the second country in the world to accept Bitcoin as legal tender

On April 27, 2022, the Central African Republic (CAR) made a bold move by adopting Bitcoin as an official currency, becoming the second country globally to do so after El Salvador. This decision was unanimously approved by the nation’s lawmakers and was seen as a step towards modernizing the country’s financial system.
 

The CAR, despite being one of the world’s poorest countries, is rich in natural resources like diamonds, gold, and uranium. However, it has been plagued by conflict for decades. The adoption of Bitcoin was part of a broader strategy to put the country “on the map of the world’s boldest and most visionary countries,” according to a statement from the CAR presidency.
 

The move was met with mixed reactions. Some saw it as a way to facilitate easier transactions, especially for businessmen who had to carry large sums of money across borders. The ease of converting Bitcoin to other currencies was also cited as a benefit. On the other hand, critics pointed out the low internet penetration in the country, with only 4% of the population having access to the web in 2019, raising concerns about the practicality of such a move.
 

The decision also had geopolitical implications, with some analysts suggesting that the adoption of Bitcoin could be an attempt to undermine the CFA franc, amid a contest for influence over the resource-rich country between Russia and France. The CAR’s close ties with Russia, particularly the presence of Russian mercenaries from the Wagner Group, added another layer of complexity to the situation.