Bitcoin Legal Tender in Central African Republic
Bitcoin was once outlawed in the Central African Republic (CAR). However, on April 27, 2022, the CAR Parliament unanimously approved bitcoin as legal tender, which is presenting fresh difficulties, possibilities, conjectures, and thoughts.
A prediction of Nayib Bukele came true
El Salvador's President, Naib Bukele, who recognized bitcoin for the first time in the world, made a prediction for 2022, claiming that two more countries will legalise bitcoin this year.
Bitcoin opponents insulted Bukele, claiming that El Salvador will be divided into three divisions, bringing out the other two countries that will use bitcoin as legal tender. Bukele's prediction has now been partially confirmed by CAR's embrace of bitcoin.
If one more country recognises bitcoin as legal tender in 2022, that prediction could come to reality.
Opposition to IMF
The International Monetary Fund (IMF), the world's lending agency, has been a vocal opponent of bitcoin. The IMF and Nayib Bukele have a loggerhead type of disagreement on bitcoin. The IMF is now paying attention to CAR as well.
CAR possesses mineral deposits such as diamonds, gold, and uranium, yet it is one of the world's poorest countries due to a lack of direct access to the international market.
CAR's economy is heavily reliant on the IMF; however, following the adoption of bitcoin, CAR is now financially independent of the IMF, similar to El Salvador.
It is unsurprising that the IMF has begun efforts in CAR to win the support of opposition organisations and governing political parties.
Limits of CAR
Bitcoin usage is reliant on electricity and the Internet, both of which are scarce in CAR.
El Salvador's electricity generation surpasses demand, and more than half of the population has Internet connection. As a result, Nayib Bukele's administration had little trouble ensuring bitcoin's legitimacy. However, the situation in CAR is different.
It is now more important than ever to provide energy and internet connection to the people in order for the government to have economic independence.
Solution: CAR has plenty of biomass, hydropower, and sunlight for solar energy. CAR has the potential to revolutionise renewable energy production for bitcoin.
CONCLUSION
Bitcoin has evolved into a technology for economic independence; the Central African Republic just lifted its prohibition on the cryptocurrency for the same reason; if its use is effective, other nations that have banned bitcoin and other cryptos, may follow the suit.
