The Central African Republic (CAR) has received optimism from the International Monetary Fund (IMF) a year after it adopted Bitcoin (BTC). The IMF’s positive outlook reflects the country’s economic outlook and the impact of adoption of the leading cryptocurrency.
The IMF released a report expressing a more positive view of the country’s economic outlook for 2023. The report indicates an expected rebound in real gross domestic product (GDP) growth to 2.2%, attributed to factors such as the base effect and policy adjustments that lead to increased fuel supplies. The IMF also forecasts an average inflation rate of 6.3% for 2023.
According to the IMF document, the projected public debt of the CAR is expected to remain sustainable. However, the report underlines the presence of significant liquidity risks, as indicated by the relevant debt indicators. These risks stem from the potential decline in donor support and difficulties in accessing national and regional markets.
The Central African Republic has made history by becoming the second country in the world, after El Salvador, to adopt Bitcoin as legal tender. Despite being one of the poorest nations in the world, the Central African Republic is harnessing the potential of Bitcoin to reshape its financial infrastructure and boost its economic prospects.
Following the approval of Bitcoin as legal tender in the Central African Republic, the government has wasted no time laying the groundwork for digital currency integration. The President of the Central African Republic, Faustin-Archange Touadera, revealed the initiative called Sango Project, which marks the country’s entry into the world of cryptocurrencies.
In December 2022, The Central African Republic announced a delay in the launch of Sango Coin on cryptocurrency exchanges. The decision was attributed to prevailing market conditions and marketing considerations. On March 31, the organization behind Sango Coin announced further delays “for just a few weeks,” citing legal and regulatory hurdles.
In January 2023, Sango Project revealed that a government task force is actively working on legal amendments to allow seamless integration of cryptocurrency.
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