The Central African Republic has become the second country to recognize Bitcoin as its official currency.
The country, which has large diamond, gold and uranium deposits, is still among the poorest countries in the world.
The country, which has been the scene of armed conflicts for decades, is allied with Russia and receives support from the Wagner group to fight the rebels.
According to the statement made by the Presidency, the decision to accept Bitcoin as the official currency was taken unanimously in the Parliament.
“This move has made the Central African Republic one of the bravest and most visionary countries in the world,” the statement said.
El Salvador was the first country to make Bitcoin an official currency in September 2021. This step was criticized by many economists, including the IMF, and it was emphasized that it could lead to financial instability.
Some experts oppose this step, on the grounds that cryptocurrencies such as Bitcoin make it easier for criminals to launder money and are not environmentally friendly because too much energy is used in their production.
Internet connection is required to use cryptocurrencies. However, according to 2019 data, only 4% of the population in the country has access to the internet.
The Central African Republic, like many former French colonies, uses the CFA (African Financial Community Franc) currency.
Some analysts say the move to Bitcoin may have been done to hurt the CFA as part of the power struggle between France and Russia over the mineral-rich country.
“Their partnership with Russia, which is subject to corruption and international sanctions, is questionable,” French analyst Thierry told AFP.
In the capital Bangui, on the other hand, different views prevail.
Speaking to BBC Afrique, the BBC’s French service from Africa, economist Yann Daworo says that this will make life easier, that it is very easy to pay with Bitcoin from mobile phones and that they can easily convert Bitcoin to other currencies:
“Businessmen won’t have to go to exchange offices with suitcases full of CFA notes and try to get dollars.”
Daworo adds that the CFA is “not used for the benefit of Africa.”
He argues that in some other countries that use this currency, the CFA is a colonial habit, allowing France to control the continent.
On the other hand, computer engineer Sydney Tickaya says that the transition to Bitcoin is early and that it is an irresponsible step:
“Internet access is still not widespread in the country and Bitcoin is completely connected to the Internet.
“The country has more pressing issues like security, education and access to drinking water.”
The Central African Republic has been the scene of conflict since it declared its independence in 1960.
In 2013, a predominantly Muslim rebel group seized power in the predominantly Christian country.
On the other hand, clashes took place between Christians and Muslims, who formed self-defense militias.
After Faustin-Archange Touadera came to power in 2016, the country started to shift its strategic partnership from France to Russia.