CAR adopts Bitcoin as a legal tender to “get out of CFA franc”

In a move considered a crackdown on the France-backed currency, the CFA franc, Central African Republic (CAR) has officially adopted Bitcoin as a legal tender, a qualified means of payment for goods, services and other transactions in the country.

This comes as lawmakers gave unanimous approval to the proposed cryptocurrency law in parliament on April 27th, 2022. CAR is one of the African countries that uses the CFA franc as an official currency.

Reacting to the passage, Martin Ziguélé, a former Prime Minister who is now an opposition deputy said “this law is a way of getting out of the CFA franc by a means that empties the common currency of its substance (…).”

The attached text explained that, “the purpose of this law is to govern all transactions related to cryptocurrencies in the Central African Republic, without restriction (…) carried out by natural or legal persons, public or private.”

Buy Me A Coffee

To drive interest towards the use of cryptocurrencies, the authorities included tax exemptions for such transactions. “Exchanges in cryptocurrencies are not subject to tax,” the text says.

The presidency in a message said “this move puts the Central African Republic on the map of the most courageous and visionary countries in the world.”

Experts believe that CAR, which uses the CFA franc as an official currency, may have acted on advice against current occurrences in the global financial space and the risk of tying one’s economy to a currency with so much external control.

With the current passage, the Central African Republic has emerged as the first African country to officially adopt the use of crypto as a legal tender. On the Global level, El Salvador was the first country to do so

Share on facebook
Share on twitter
Share on whatsapp