Second country in the world to recognize Bitcoin

The risky decision was approved by the CAR National Assembly and signed by President Faustin Archange Touadéra. The law is called “Regulation of Cryptocurrencies in the Central African Republic”.

The content of the new law covers the use of cryptocurrencies and those who use them in online commerce, “smart contracts using Blockchain technology” and any electronic transactions.

In addition, the new law also stipulates that cryptocurrency exchanges will not be subject to taxes in the Central African Republic. The Verge.

CAR is the second least developed country in the world, according to United Nations statistics. Along with the legalization of cryptocurrencies, they also use the CFA franc as a reference currency. CAR’s decision is expected to revolutionize the digital economy in one of Africa’s poorest countries, but rich in diamonds, gold and uranium.

The Central African Republic becomes the second country in the world to recognize the Bitcoin cryptocurrency. Photo: The Verge

Bitcoin is a virtual asset that has had a huge fluctuation in value in recent years. For example, last year Bitcoin price surged more than 150% to a record $68,991/Bitcoin, before falling more than 30%.

The value of this coin also continuously “dances” in 2022 when it fell 17% in February but increased by 8% and 10% in March and April respectively.

Previously, El Salvador became the first country in the world to recognize the legality of Bitcoin in September 2021. The International Monetary Fund (IMF) immediately warned this was a decision dangerous to “financial stability, financial integrity and consumer protection”.