Central African Republic is the First African Nation to Embrace Bitcoin as a Legal Tender
The Central African Republic, a landlocked country roughly in the middle of Africa, has become the first African government to recognize Bitcoin as legal cash.
The Central African Republic’s Ministry of Finance and Budget, as well as the Ministry of Digital Economy, Postal Services, and Telecommunications, have presented a joint document that recognizes Bitcoin as a legal tender. In addition, the document outlined the country’s legislative foundation for cryptocurrency adoption. Opposition parties in the country have also lent their support, believing that digital assets may benefit the country.
The new Bitcoin law, according to the National Assembly, will aid the Central African Republic’s economic recovery.
According to RFI, France’s state-owned international radio channel, the decision to make Bitcoin legal cash in the Central African Republic was made by the National Assembly, which passed the law unanimously.
The Bitcoin Act was initiated and introduced by Calixte Nganongo, Minister of Finance and Budget, and Gourna Zacko, Minister of Digital Economy. The Ministers approved legislation in the Central African Republic controlling Bitcoin and cryptocurrency governance.
Traders and businesses would be able to make crypto payments and tax payments through authorised entities under the new law, according to reports.
The new crypto law also includes penalties for those who break the rules. According to a separate CoinTribune story, criminals could face up to 20 years in prison and fines ranging from 100 million to 1,000 million Central African CFA Francs.
El Salvador became the first country in the world to recognize Bitcoin as legal money in September 2021. El Salvador’s president, Nayib Bukele, announced in November that the country intends to build a “Bitcoin City.” Sales of Bitcoin bonds with a 6.5 percent coupon rate within the first five years, according to the pro-Bitcoin president, will fund the development of Bitcoin City.
As Bitcoin’s popularity grows, a Prospera special economic zone has designated BTC as an acceptable currency. As a result of the announcement, municipalities in Honduras are now permitted to issue BTC-based bonds in order to attract foreign investment.
