The leading currency was just authorised as legal money in the African state in response to a request by influential legislators.
The Central African Republic (CAR) intends to use Bitcoin as a reserve asset as part of its attempts to embrace cryptocurrencies and blockchain technology as instruments to improve its ailing economy.
The Central African Republic’s move to include the leading cryptocurrency in its national reserves follows a program that legalises Bitcoin in the country. The country became the first in Africa to recognise Bitcoin as legal cash in April.
Two politicians, Minister of digital economy Gourna Zacko and Minister of Finance Calixte Nganongo drafted the plan, which the national parliament approved. Officials voiced support for the program, and the Senate passed the measure unanimously.
CAR followed its Bitcoin legalisation law with the Sango project, a blockchain-based platform to facilitate crypto acceptance in the country. Sango is a Bitcoin sidechain constructed similarly to the Liquid Network. Sango is scheduled to begin on July 25 and is anticipated to operate as a layer 2 digital monetary system.
The adoption of bitcoin in the CAR was met with resistance from financial regulators
While accepting BTC in the Central African Republic’s senate earned support, foreign entities criticised the move, who felt the decision might endanger the country’s economic stability.
Like El Salvador, the International Monetary Fund expressed concern and recommended the Central African Republic seek an alternative course of action. The Bank of Central African States, a financial behemoth that serves six countries, including the CAR, was likewise opposed to the widespread use of Bitcoin.
Also Read: Global crypto market worth grows 8% in 30 days amid bankruptcy
