The Central African Republic (CAR) has become a focal point in the world of cryptocurrencies amid several reports of Bitcoin (BTC) adoption very similar to that of El Salvador. However, contrary to popular headlines, the African nation has not adopted BTC as legal tender, instead legalizing the use of cryptocurrencies in financial markets.
The cryptocurrency bill was introduced by Justin Gourna Zacko, the Minister of Digital Economy, Posts and Telecommunications, on April 21 and was unanimously approved by lawmakers in parliament. despite opposition protest, RFI reported.
The cryptocurrency law aims to establish a favorable environment for the inclusive growth of the cryptocurrency sector in the region. Minister Zacko also highlighted the growing difficulties in sending money from the African nation and considered that the adoption of cryptocurrencies would help solve this problem.
Reportedly, the new law will allow merchants and companies to make payments in cryptocurrencies and will also give way to the payment of taxes in cryptocurrencies through authorized entities.
The new cryptocurrency law has also made provisions for violators who break the laws. According to one report, offenders could be jailed for up to 20 years and fined between 100,000,000 and 1,000,000 African Financial Community (CFA) francs.
Gloire, the founder of Kiveclair, a Bitcoin Beach-inspired refugee project in Congo, explained the details of the new law and told Cointelegraph:
“The real implication for people is that they can now access currencies other than the FCFA (this is the local currency) while being protected by law, and transfer money at a lower cost. Above all, they can carry out financial transactions without banks (being protected by law). “
A total of 14 countries use the euro-linked CFA franc, printed in France, and their monetary policy is controlled by Western powers.. Although the official parity was set at 1 euro for 655.96 CFA francs, the value of the fiat currency has been declining for some time. Thus, bitcoin and other cryptocurrencies are gaining popularity among countries affected by the national economic crisis.
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