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The world’s poorest country recognizes Bitcoin even though people have very low Internet access

The National Assembly of the Central African Republic, which is located in central Africa, has unanimously passed a bill to officially recognize Bitcoin as a national currency.

Central African Republic President Faustin-Archange Touadéra could not hide his joy when the country’s parliament officially passed the bill. He said that the move to recognize Bitcoin could help “improve the economic conditions of the people of Central Africa and make the country one of the most daring, visionary countries in the world”.

With the passage of the bill, people in Central Africa can use Bitcoin to conduct daily transactions, similar to a regular currency.

The world's poorest country recognizes Bitcoin even though people have very low Internet access - Photo 1.

Despite very low Internet coverage, the Central African Republic still accepts Bitcoin as legal currency (Image: Getty).

However, many geopolitical analysts and financial experts are confused and confused by the Central African Republic’s move to officially recognize Bitcoin.

Although the Central African Republic is a country rich in resources such as gold, uranium and other valuable minerals… however, due to the influence of civil war since 2012, Central Africa is still one of the countries in the world. poorest and least developed country in the world, with an estimated median income of $477 per person by 2020, of which 71% of the Central African population lives below the poverty line.

Notably, only about 11% of the 4.8 million people in the Central African Republic have access to the Internet, which makes many experts question how users can use Bitcoin as a source of money. currency transactions when not everyone has Internet connection conditions?

“The biggest question is who is this crypto policy for, when the Internet coverage in the Central African Republic is only 11%. Perhaps the government has been foretold about the possible adoption of Bitcoin. promote domestic payments, but it is not clear how this will happen?”, David Gerard, an African political researcher, commented.

Currently, the Central African Republic uses the Central African CFA franc as its currency. This is a common currency used by 6 countries located in Central Africa, belonging to the Central African Economic and Monetary Community (including Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon) ). The value of the Central African CFA franc is closely related to the fluctuations in the value of the Euro, therefore, many argue that the recognition of Bitcoin is a move for the Central African Republic to reduce its dependence on the common currency of the Chinese CFA franc. Fly.

Thus, the Central African Republic has become the 2nd country in the world to officially recognize Bitcoin as a legal currency.

Previously, in June 2021, El Salvador became the first country in the world to consider Bitcoin as a legal currency and used in tandem with the USD (this country’s official currency), allowing people to use Bitcoin for daily transactions such as buying goods, paying taxes, paying bills, etc.

Some other countries allow the use of Bitcoin legally, but still do not consider Bitcoin as an official currency to replace the official currency being used in that country. In addition, the governments of several countries are also considering legalizing cryptocurrency trading and approving the use of cryptocurrencies for everyday payments.

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