Central African Republic Adopts Bitcoin as Legal Tender making it the second country on the face of the earth to do so. With a unanimous decision, its lawmakers voted for Bitcoin (BTC) and cryptocurrencies to be recognized as legal tradable assets.
The Central African country is one of the poorest countries in the world, approximately 71% of CAR’s 5.4 million inhabitants live below the international poverty line as of 2020 World Bank reports.
CAR (Central African Republic) is a landlocked nation deep in the heart of Africa, being rattled by political violence and turmoil for decades. The country is blessed with Diamonds and other mineral resources yet this has not translated into development and economic growth in the country as is common with other African countries.
Central African Republic with internet coverage of around just 11% remains to be seen how it intends to achieve proper adoption of bitcoin as a legal tender. This move by the CAR was celebrated by the cryptocurrency community as another step in the journey for mainstream adoption.
El Salvador last year adopted Bitcoin as legal tender which was greeted with dismay from the IMF (International Monetary Fund). The IMF urged El Salvador to drop bitcoin as a legal tender, stating concerns over the risks it poses in regards to its financial stability and consumer protection.
Bitcoin and Cryptocurrencies are highly volatile commodities and asset class. Bitcoin sharply rose 6% following the news of CAR adoption and Elon Musk acquisition of Twitter in a $54billion trade. Rising to $42,000, however it has dropped to as low as $37,300 as at the time Nebo Finance made this publication.