Central African Republic (CAR) got its independence in 1960 and has since suffered from on-going religious conflict. In 2013, Muslim rebels seized control of the predominantly Christian country, resulting in militias being formed to combat the rebels, leading to more carnage.
CAR, despite being rich in natural resources like gold, diamonds and uranium is said to be one of the poorest and least developed country in the world. In 2019, it was reported that it was only 4% of the citizens that has access to internet.
In 2022, the country made a decisive move to make new laws that will govern cryptocurrency in the country. CAR’s president, Faustin-Archange Touadera who came into office in 2016 in a statement signed by his chief of staff, disclosed that parliament unanimously approved a bill for the adoption of bitcoin as the country’s legal tender.
In the statement, the president called the adoption, a decisive step toward opening up new opportunities for the country, which will invariably improve the conditions of CAR’s citizens
This move made CAR, to become the first country in Africa and only the second in the world after El Salvador, to adopt bitcoin as its currency. Prior to this, CAR was one of the six nations that use the CFA franc, a French backed regional currency governed by the Bank of Central African States (BEAC).
Some African governments however, have different approach to the issue of cryptocurrencies and blockchain technology and its regulation. Nigeria for instance, barred local banks from working with cryptocurrencies before going ahead to launch eNaira, its own digital currency.
South African regulators is still looking at the potential regulation of cryptocurrencies and other blockchain technology, while Tanzania’s central bank said last year that it was working on a presidential directive to prepare for cryptocurrencies.
The move has received both admiration and criticism from a lot of quarters.