The Mercury

CAR adopts bitcoin as an official currency

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CENTRAL African Republic (CAR) has adopted bitcoin as an official currency, the presidency said, becoming the first country in Africa and only the second in the world to do so.

Despite rich reserves of gold and diamonds, CAR is one of the world's poorest and least-developed countries and has been gripped by rebel violence for years.

A bill governing the use of cryptocurr­ency was adopted unanimousl­y by parliament last week, said a statement signed by Obed Namsio, chief of staff of President Faustin-Archange Touadera.

“The president supports this bill because it will improve the conditions of Central African citizens,” Namsio told Reuters, without elaboratin­g.

He called it “a decisive step toward opening up new opportunit­ies for our country”.

CAR is one of six nations that use the Central African CFA franc, a regional currency governed by the Bank of Central African States (Beac).

Two of the country’s former prime ministers last week signed a letter expressing concern about the adoption of bitcoin without guidance from the Beac, calling it a “serious offence”.

“The Beac learned at the same time as the public of the enactment of a new law on cryptocurr­ency in CAR,” a Beac spokespers­on said, adding that the bank did not have an official response yet.

El Salvador became the first country in the world to adopt bitcoin as legal tender last year, but the roll-out was hampered by scepticism and it postponed a proposed bitcoin bond in March amid global market turmoil.

African government­s have taken a varied approach to regulating cryptocurr­encies and blockchain technology.

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