The Central African Republic (CAR) approved Bitcoin as legal tender in April 2022, becoming the second country to do so after El Salvador. This decision was unanimous among lawmakers. The CAR presidency stated that this move puts the country "on the map of the world’s boldest and most visionary countries".

Despite being one of the world’s poorest countries, the CAR is rich in diamonds, gold, and uranium. The country has been wracked by conflict for decades and is a close Russian ally. The adoption of Bitcoin has been seen by some as an attempt to undermine the CFA franc, which is currently used as its currency along with most other former French colonies in Africa.

However, the decision has been met with mixed reactions. Economist Yann Daworo believes it would make life easier, as transactions can be made with smartphones and it was easy to convert Bitcoin to any other currency. On the other hand, computer scientist Sydney Tickaya thought the adoption of the cryptocurrency was “premature” and “irresponsible”, citing the underdeveloped internet access in the country and the fact that Bitcoin depends entirely on the internet.

Critics, including the International Monetary Fund, have raised concerns about the increased risk of financial instability and the potential for cryptocurrencies such as Bitcoin to facilitate money laundering. Additionally, the environmental impact of Bitcoin, which requires significant electricity to generate, has also been a point of contention.

Despite these concerns, the CAR government argues that adopting Bitcoin will secure an independent financial future for the country. They have announced a project called Sango, which aims to create a “Crypto Island” and a "legal Crypto Hub recognized by a country’s parliament". However, the specifics of this plan remain unclear.

sources:

bbc.com

bing.com

bbc.com

bitcoinist.com

cnbc.com

coinspeaker.com