The Central African Republic has been known to follow in the footsteps of El Salvador in adopting Bitcoin as legal tender. The bill to pronounce Bitcoin and CFA franc legal tender was signed in April, and CAR’s president Faustin-Archange Touadera already has plans to build a crypto hub on an island called Sango. Furthermore, Touadera has invited a collective of Bitcoin (BTC) experts to evaluate the situation in the developing country.
#Bitcoin is the blueprint for the new monetary system.Sound #money.Apolitical and uncensorable.Neutral and decentralized.Guided by the #community.Orchestrated by code.A better #currency for a better world. #BTC #CARIs CAR Really Ready?— Faustin-Archange Touadéra (@FA_Touadera) June 7, 2022
The collective consisting of 7 Bitcoin experts have spent 7 days in the country ‘to understand the Central African Republic context better and identify the main factors that will encourage or inhibit the adoption of Bitcoin in the country’. The Bitcoin delegation also pointed out the pros and cons of the current state of the country, painting a vivid picture of how ready CAR is really for a nation-wide adoption of the top digital asset.
Advantages include:
- Favorable regulations for Bitcoin adoption
- A wide-spread adoption of mobile money
- 95% of the population is unbanked
- Lack of internet access
- Lack of electricity access
- No educational programmes covering Bitcoin
- SIM card restrictions (only can be bought with ID)
Understanding #Bitcoin is crucial to acknowledge its disruptive power to bring long term prosperity. Mathematics don't account for human emotions.Future generations will look behind at these very moments to our strength & unity in choosing the right path during hard times #BTC— Faustin-Archange Touadéra (@FA_Touadera) June 14, 2022
The Bitcoin delegation expressed their concerns about lack of access to the internet and electricity in general. For instance, Bangui has good electricity integration, while most of the rural areas still can’t access electricity, not to mention the internet. The Bitcoin adoption would go smoothly only if there’s no economic diversion in the country.
On the other hand, the Central African Republic is already in collaboration with the Bank of Development of Africa to install fiber optic cables which would cover 70% of the area and this way 9 out of 10 citizens would be able to access the internet easily. There’s plans to make the fiber optic available to the public as soon as this month.
Furthermore, the fact that mobile payments is already a very popular means of payment in the country, sets a great foundation for Bitcoin (BTC) to be implemented in everyday transactions. The Bitcoin delegation recommends CAR to install Bitcoin cash machines in safe areas in partnership with the 12,000 mobile retailers in the country.
On the Flipside
- World Bank disapproves of Central African Republic’s plan to adopt Bitcoin as legal tender