- The Central African Republic adopts the cryptocurrency.
- CAR makes plans to create the legal framework for crypto adoption
- African countries are now joining the crypto train.
A developing country in central Africa, the Central African Republic (CAR) has assigned a 15-member community the duty to work on a legal framework that will allow for cryptocurrencies to operate in the country and expedite the development of the national economy. The committee would be in charge of drafting a bill on cryptocurrency use and Tokenization for the region.
The president of the country, Faustin-Archange Touadera, said he believed that cryptocurrencies could help eradicate the country’s financial barriers and be instrumental in creating a business-friendly environment that a proper legal framework for the usage of cryptocurrency can support.
The Central African Republic’s primary objective for implementing legal laws and frameworks for cryptocurrency is to use crypto to develop the national economy. The committee that was set up to draft the crypto laws is compromising of 15 experts from five ministries of the country, the Ministry of Mines and Geology, the Ministry of Forest, Waters, Hunting and fishing, the Ministry of Agriculture and Rural Development, the ministry of town planning, Land Reform, Towns and Housing and lastly the Ministry of Justice, Promotion of Human rights and Good Governance.
The government gave the committee the job of creating a legal framework that would allow cryptocurrencies to operate in the Central African Republic in a way that helps with the country’s development and is appropriately supervised to minimize risk cases for the country and government. More African countries have become open to cryptocurrency and adopting blockchain into their financial markets. Nigeria recently announced its intentions to work around the laws they created on crypto as it was previously banned in the country. Still, even with the ban, it was one of the top countries for cryptocurrency globally.
Alongside the Central African Republic’s intent to create a legal framework for cryptocurrency, a Nigerian crypto exchange Roqqu was able to bag a virtual currency license for the European Economic Area after it waited for two years to get permission from the country’s regulatory authorities, which opened the door to more exposure for the crypto African continent market.
The CEO of Roqque, Benjamin Onomor, in a conversation with Cointelegraph, said that Africans overseas send back at least $5 billion to relatives. The current remittance system causes a slow process, and crypto is a great way to solve the issues facing the remittance system as it can bridge the gap through a cheaper route and also aid in the reduction of fees in moving money globally.
After the Central African Republic adopted Bitcoin, they immediately created the Sango Coin token. This move was made in 2022, after which the Central African Republic (CAR) became the first African country to facilitate the adoption of Bitcoin as a legal tender and the second country to recognize Bitcoin globally, following in the footsteps set by El Salvador, which helped in boosting the surge of tourism numbers, and a healthy economy since they decided to allow citizens make purchases of everyday items with the seminal cryptocurrency.
While the Central African Republic is less developed economically than its Central American counterparts, with the existence of its coin, the country is determined to emulate the success of El Salvador and thrive economically with cryptocurrency. Despite the vast natural resources that the Central African Republic enjoys, it is plagued by gross economic mismanagement and meager private and foreign investments; alongside a host of systemic governmental issues, the adoption of cryptocurrency would be of excellent service to the country’s economy. The existence of the Sango coin is to drag in a stream of tourism for the country.
The Central African Republic will benefit heavily from its decision to adopt cryptocurrencies and create a legal framework; it can enjoy the benefits of the crypto market while still regulating it properly so that no illegal activities are destroying the market.
Conclusion
The African space continues to open up the way for cryptocurrency to infiltrate the market. It will help shape the financial sectors of these countries and the entire continent in general, especially if crypto is adequately adopted and not mismanaged. It will go a long way in fixing many issues plaguing the financing systems.
The Central African Republic is not the first African country to open its arms to cryptocurrency. Still, it will also open the door for other countries to adopt crypto or look into the market.
