The Central African Republic has joined the crypto adoption race globally. This transition makes it the first African country to adopt Bitcoin as a currency.
The National Assembly of The Central African Republic has voted unanimously on a bill accepting Bitcoin as a means of settlement. The decision also provided a regulatory framework that would facilitate this transition. The development makes The Central African Republic the only African country to have legalized crypto for transactions. The nation comes second to El Salvador in the same regard globally.
Despite being the second country to implement the use of bitcoin as payment, lawmakers have made a significant effort to join this league. Coindailypress reported in February that political advisers proposed a bill in the State of California to make Bitcoin a legal tender. The former majority leader of the State, Ian C. Calderon made the proposal public on Twitter. He revealed that he would be working with crypto expert Dennis Porter to see these plans come to fruition.
Shortly after, a senator in the neighbouring State made similar efforts to integrate Bitcoin into their monetary system. This growing list may indicate the interest in more governments following the footsteps of El Salvador and The Central African Republic.
More Africans See Bitcoin As A Safe Haven
A world bank report has revealed that The Central African Republic has been suffering economic drawbacks. This has left the country in need of desperate recovery by turning to digital assets.
XAF traded volume | Source: UsefuleTulip
Data from Usefultulip shows that despite the relatively small market in 2021, the country enjoyed significant growth in its trade volume. The total amount of the Central African Franc (XAF) peaked at an equivalent of over $700,500 in September of the same year. Although this sum pales in comparison to most African countries, like Nigeria and Kenya, indicating a decent sign of growing adoption.
Similarly, countries like Nigeria have recorded a substantial increase in their peer-to-peer market. The dwindling exchange rates have constituted one of the primary reasons for this occurrence.
In conclusion, with the current pace of crypto adoption, the adoption of Bitcoin as legal tender might be one of the many changes the space may enjoy going forward. Also, the desperate State of most emerging markets may lead to more reliance on cryptocurrencies.
Do you think more countries will adopt Bitcoin as a legal tender this year? Let us know your thoughts in the comments below.
Kingsley is a fintech writer with over 4 years of experience covering blockchain and cryptocurrency news. Alo first discovered Bitcoin in 2016 and has been passionate about it ever since, particularly the various ways blockchain can help Africa and the world at large. He desires to give the crypto space a more geographically balanced narrative and serve as a bridge between Africa and the rest of the world. His articles have been featured in Cointelegraph, Beincrypto, and Forkast.news, among others.
