The Central African Republic has approved Bitcoin as legal tender, becoming the second country to do so.
Despite the Central African Republic’s vast deposits of uranium, gold, and diamonds, the nation remains one of the poorest countries in the world.
In September, El Salvador became the first nation to recognize bitcoin as legal tender, a move criticized by the International Monetary Fund (IMF), stating that the move increases financial instability.
Other critics worry cryptocurrency could make money laundering easier for criminals.
Only 4% of the population in the Central African Republic currently has access to the internet, according to the WorldData website.
At the moment, the Central African Republic uses the French-backed CFA franc as its currency. This is common among most former French colonies in Africa.
The adoption bitcoin will make life easier, as it’s easy to convert crypto into other currencies and the transactions can be made with a smartphone.
Many in the capital city of Bangui believe the CFA is a relic of the French control over the Central African Republic.
Ongoing conflict between Muslim rebels has ravaged the Central African Republic since it gained its independence in 1960.
In 2013, self-defense militias were established, leading to extensive massacres along religious lines.
After President Faustin-Archange Touadéra came to office in 2016, the country started shifting its strategic alliance from France towards Russia.