The Central African Republic (CAR) becomes the second nation after El Salvador to adopt bitcoin as legal currency. It will now be ruling the country’s finances along with the regional Central African CFA franc.
According to a news report, all the lawmakers of CAR unanimously voted in favor of clearing of a bill according to which bitcoin will be a legal tender alongside the CFA franc. The use of cryptocurrencies has also been legalized.
President’s chief of staff Obed Namsio commented that, the CAR “is the first country in Africa to adopt bitcoin as legal tender”, and “This move places the Central African Republic on the map of the world’s boldest and most visionary countries,” he declared.
Although CAR is the mining hub for diamonds, gold and other valuable metals yet it is one of the poorest and most troubled nations. The reason for the same goes to political precariousness. The country has only a population of 5 Million. But internet penetration in the country is merely 11%.
Although the crypto world is delighted with the decision as it is one step towards the legal acceptance of Bitcoin. But the regulatory authorities across the world may not be satisfied as the same decision when taken by El Salvador last year was highly criticized. Their main concern being the volatility of the cryptocurrency and the dark web activities associated with it.
So, the world is showing a mix of emotions towards the new zone of investment, namely digital currency. Some economies of the world are embracing it whole heartedly and some are tightening the regulatory measures to slow down the pace with which the cryptocurrency is exploding the markets.
In another news, Panama, the Latin American country has also passed a law regulating the crypto currencies. Its National Assembly passed a new crypto regulation bill on Thursday, so goes one report.
However this bill has yet not received the approval of Panama President Laurentino Cortizo. It may also be noted that Panama is known in the world as tax haven. How this bill is going to affect international investment transactions, will be seen in near future.
It is also puzzling to see that on the one hand all major economies of the world such as USA, China, France, India, Germany etc. are highly reluctant to confer any legality to Bitcoin or any private cryptocurrency but on the other hand, countries having small and insignificant economic influence are rushing to accord legality to these crypto currencies. Very soon, we shall try to solve these puzzles as well.
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