Central African Republic Becomes 1st African Country To Adopt Bitcoin

The Central African Republic (CAR) has adopted Bitcoin (BTC) as legal tender, the president’s office said in an announcement.

The new law makes it the first African country the second nation in the world to officially adopt Bitcoin as a legal currency. This means that the CAR citizens can use it in commercial activities as well as to pay taxes.

The lawmakers of The Central African Republic unanimously approved the new bill legalizing the use of cryptocurrencies in the country and making Bitcoin and the CFA franc legal tender. President Faustin Archange Touadera signed the new measure into law, according to a statement from his chief of staff Obed Namsio.

Namsio said in the statement:

“[The CAR] is the first country in Africa to adopt bitcoin as legal tender. This move places the Central African Republic on the map of the world’s boldest and most visionary countries.”

El Salvador became the first country to make Bitcoin as legal tender officially on September 7, 2021. Since then its citizens and businesses have been able to transact in the leading digital currency.

El Salvador faced issues regarding financial inclusion, as majority of its population did not have access to the banking system when the country’s bitcoin adoption began, however, internet access was widespread. The situation for CAR is slightly different.

Internet penetration in the African country was estimated to be only 11.4% of the population in January 2021, which could cause issues for using Bitcoin, as internet connectivity is needed for peer communication in the network and for making payments.