The Central African Republic (CAR), has been the centre of crypto-world attention, with reports that it may adopt Bitcoin (BTC), a move similar to El Salvador. Contrary to popular belief, the African nation did not adopt Bitcoin (BTC) as a legal tender. Instead, it reportedly allowed cryptocurrency use in financial markets.
Justin Gourna Zacko, Minister of Digital Economy, Post and Telecommunications, introduced the cryptocurrency bill on April 21. It was unanimously approved in parliament, despite protests from the opposition, RFI reported.
The crypto law is designed to create a favorable environment that encourages the growth of the crypto industry in the region. Minister Zacko pointed out the increasing difficulties of sending money to Africa from abroad and said that crypto adoption would help resolve this problem.
According to reports, the new law will allow businesses and traders to make crypto payments. It also allows for tax payments in crypto via authorized entities.
New crypto law also includes provisions for those who violate the laws. One report states that offenders could face imprisonment for as long as 20 years and be fined up to 100,000,000 to 1,000,000,000 Financial Community of Africa francs.
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Gloire, who is the founder of Kiveclair (a Bitcoin Beach-inspired refugee program in the Congo), explained the details to Cointelegraph.
The real impact for the people is that they now have access to other currencies than the FCFA (local currency), while being protected and can transfer money at a lower price. They can also make financial transactions with no banks, while still being protected by the law. ”
The CFA franc is used by 14 countries. It is pegged to the euro and printed in France. Its monetary policy, however, is controlled by the West. The official peg was set at 1 Euro to 655.96 CFA Francs. However, fiat has been losing value for some time. As a result, Bitcoin and other cryptocurrency are gaining popularity in countries that are experiencing economic crises.