The National Assembly of the Central African Republic unanimously approved a bill that contemplates the regulation of the use of cryptocurrencies such as bitcoin in its territory.
The African country is in the spotlight in the world of cryptocurrencies after certain rumors that it would adopt Bitcoin as legal tender, something that was already implemented by El Salvador. Official sources denied this possibility but announced its control by law.
The proposal was issued by the Minister of Digital Economy, Posts and Telecommunications, Justin Gourna Zacko. The official explained that the objective of this document is to “establish an enabling environment for the financial sector that meets the needs of the profession in this sector and all economic actors”. The main objective is for the country to have a legal framework governing cryptocurrencies and the businesses that use them.
The cabinet member referred to the ability of cryptocurrencies to evade the role of the Central Bank: “With cryptocurrency, there is no longer control by this body. You have your money, you send it to an investor for a business, you receive it in any currency and it is available to you in Dollar, Euro, CFA or Naira. There are many advantages in cryptocurrencies, but first we would have to have the legal frameworks to allow any Central African to also benefit from this possibility of transferring and receiving money.”
With small and struggling economies, African countries are constantly thinking of alternatives for their economies. The Central African Republic is called one of the poorest countries in the world, which is why the population is being encouraged to use assets so as not to be dependent on the economic policies of its rulers.
In contrast, Nigeria banned cryptocurrency transactions in February 2021 and ordered the closure of all customers’ accounts. The ban was quickly lifted and, in July last year, the Nigerian government announced the creation of a controlled digital currency to reduce the incentives for those who wanted to use unregulated cryptocurrency.