First country in Africa, second country in the world
The news fell on April 27, 2022: the Central African Republic is making bitcoin its official currency, along with the CFA franc.
It is the very first African country to legalize bitcoin, only a year after El Salvador followed the same path.
Adopted unanimously by the deputies, this law nevertheless has something to surprise and question.
Because if the Central African Republic wants to be extremely rich in resources of gold, uranium and diamonds, it is one of the poorest and most unstable countries on the planet.
A paradox that is far from arousing neutrality of opinion, particularly with the Bank of Central African States (BEAC), which points to a problem of “community mores”.
So why would a third world country,
A major upheaval in monetary functioning
Because the other surprising element is precisely the adoption of a digital currency in a country where only 7.1% of the 5 million inhabitants have the Internet.
The adoption of bitcoin thus marks a turning point in the history of the Central African Republic.
The Government aspires to capitalize on bitcoin to open up to the digital world, to meet technological challenges and to become more anchored in the opportunities of the Internet.
In this sense, bitcoin seems to be the first brick of change.
More concretely, transactions carried out in bitcoin will tend to simplify transfers in traditional currencies such as the euro, the dollar or the CFA franc, and will not be subject to tax.
As far as taxation is concerned, taxes can perfectly be paid by bitcoin.
The country has also created a dedicated infrastructure,
the National Agency for the Regulation of Electronic Transactions, which will check and manage all automatic withdrawal counters (ATM).
A choice that follows that of El Salvador, namely to conquer the entire territory and convert its population to cryptocurrency.
As for bitcoin miners, they will have to declare their profits by a currency benefiting from a legal tender in the country.
In addition to the obvious interest for activities inherent in online commerce or tax contribution, bitcoin is a crucial issue in the context of the "
As for bitcoin miners, they will have to declare their profits by a currency benefiting from a legal tender in the country.
In addition to the obvious interest for activities inherent in online commerce or tax contribution, bitcoin is a crucial issue in the context of the "
As for bitcoin miners, they will have to declare their profits by a currency benefiting from a legal tender in the country.
In addition to the obvious interest for activities inherent in online commerce or tax contribution, bitcoin is a crucial issue in the context of the "
recovery and peacebuilding plan
” according to President Faustin Archange Touadera.
One more step towards the evangelization of cryptocurrency
The application of this law is far from being anecdotal for the history of cryptocurrency.
It is even fundamental.
If we look back a few years, bitcoin only inspired suspicion and fear.
Today, dematerialized currency is used more and more, by large companies as well as more lambda individuals.
Becoming an official currency is a giant step, one that will allow bitcoin to further legitimize its strength and wealth.
That such an unstable country can take such a decision reflects this desire to move the lines, to find parallel opportunities to get out of the difficulty.
Like a blank page to feed, the country will be able to free itself from cash to carry out transactions in each country of the world.
There remains the problem of internet access,
another fundamental issue to give bitcoin all the place it deserves.
Without hoping for very high speed, basic telecom coverage of the 2G type could be more than enough.
This daring challenge allows for rapid enforcement.
Indeed, this digital currency system can be set up overnight, without involving too much effort.
The world of tomorrow is underway
More than ever, this famous "world of tomorrow", the one that will advocate simplicity of payment, transfers of assets to the four corners of the globe, seems resolutely in the process of being built.
Brick by brick, we see a positive evolution towards these new ways of working.
At first very large companies, then the smallest, before affecting individuals and, now, entire countries.
Making bitcoin an official currency is a key step in this process of change.
Despite its social and economic context, the Central African Republic serves today as an example.
Building something on empty land is a gamble.
The future will tell what fruits he reaped.
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