Thursday, July 7, 2022

Central African Republic Becomes Second Nation to make Bitcoin Legal Tender

HometechCentral African Republic Becomes Second Nation to make Bitcoin Legal Tender

The Central African Republic, a landlocked nation which lies roughly at the centre of the African continent, has become the first African country to declare Bitcoin legal tender. The Ministry of Finance and Budget and the Ministry of Digital Economy, Postal Services, and Telecommunications have submitted a joint document that recognises Bitcoin as an acceptable currency in the Central African Republic. Additionally, the document detailed the legal framework for crypto adoption in the country. Support has also arrived in the form of opposition parties in the country who believe that the country can benefit from digital assets.

The National Assembly believes that the new Bitcoin law will help the Central African Republic’s economic recovery. As per a report by RFI, the state-owned international radio broadcaster of France, the move to make Bitcoin legal tender in the Central African Republic came from the National Assembly, which unanimously passed the bill.

The Minister of Finance and Budget Calixte Nganongo, and the Minister of Digital Economy Gourna Zacko initiated and introduced the Bitcoin legislation. The Ministers submitted to the legislation governing Bitcoin and crypto regulation in the Central African Republic.

The new law would reportedly allow traders and businesses to make crypto payments and make way for tax payments in crypto through authorised entities.

The new crypto law has also made provisions for offenders who break the laws. According to a separate report by CoinTribune, offenders could be jailed for up to 20 years and fined between 100,000,000 to 1,000,000,000 Central African CFA Francs (roughly Rs. 1.25 crore to 12.5 crore).

In September 2021, El Salvador became the first country in the world to announce Bitcoin as a legal tender. El Salvador president Nayib Bukele said in November that the country is planning to develop a “Bitcoin City”. According to the pro-Bitcoin president, sales of Bitcoin bonds with a 6.5 percent coupon rate within the first five years will fund the development of Bitcoin City.

As the adoption of Bitcoin continues to grow, a special economic zone of Prospera has also recognised BTC as an acceptable currency. Following the announcement, municipalities in Honduras are now allowed to issue bonds in BTC to attract foreign investments.