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IMF warns Central African Republic on adopting bitcoin as currency

IMF warns Central African Republic on adopting bitcoin as currency
Written by Arindam
IMF warns Central African Republic on adopting bitcoin as currency

The International Monetary Fund (IMF) has said that the adoption of bitcoin as a currency by the Central African Republic will pose several challenges. The IMF has expressed macroeconomic and legal concerns. He said the same thing about El Salvador. The Central African Republic, which ranks among the world’s poorest countries, last week granted cryptocurrencies legal tender status. It has become the second country after El Salvador to do so, while the first African country.

The IMF said in a conversation with Bloomberg that the Central African Republic (CAR)’s adoption of bitcoin as a legal tender would pose legal and economic challenges.

At the same time, like El Salvador, the Central African Republic also believes that adopting bitcoin as a legal tender will help its economy. This could be the beginning of a new wave of countries accepting bitcoin as a currency. However, the meaning of this decision of the country is not understood, because according to WorldData in the year 2019, only 4 percent of the people in CAR had access to the Internet.

The government of the Central African Republic has said that the adoption of bitcoin will help its economy recover and accelerate growth, as well as help stabilize the country. Remember that this country has been almost devastated due to a decade-long civil war.

CAR President Faustín Archange Toudera last week signed legislation to legalize cryptocurrencies and make bitcoin a legally valid currency in the country after a unanimous parliamentary vote. CAR officials also said that their country is moving forward on many more plans regarding crypto.

Significantly, El Salvader is the first country in the world to adopt bitcoin as a currency. Its President Nayib Bukele is considered a big supporter of cryptocurrency. He has also started a wallet for transactions in bitcoin. Now the next name has been added to this episode of CAR.

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Arindam

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