The Central African Republic has been known to follow in the footsteps of El Salvador in adopting Bitcoin as legal tender. The bill to pronounce Bitcoin and CFA franc legal tender was signed in April, and CAR’s president, Faustin-Archange Touadera, already has plans to build a crypto hub on an island called Sango. Furthermore, Touadera has invited a collective of Bitcoin (BTC) experts to evaluate the situation in the developing country.
Is CAR Really Ready?
The collective, consisting of seven Bitcoin experts, has spent seven days in the country “to understand the Central African Republic context better and identify the main factors that will encourage or inhibit the adoption of Bitcoin in the country.” The Bitcoin delegation also pointed out the pros and cons of the current state of the country, painting a vivid picture of how ready CAR really is for the nationwide adoption of the top digital asset.
- Favorable regulations for Bitcoin adoption
- A widespread adoption of mobile money
- 95% of the population is unbanked
- Lack of internet access
- Lack of electricity access
- No educational programs on Bitcoin
- SIM card restrictions (only can be bought with ID)
Understanding #Bitcoin is crucial to acknowledge its disruptive power to bring long term prosperity. Mathematics don't account for human emotions.Future generations will look behind at these very moments to 🥳 our strength & unity in choosing the right path during hard times #BTC— Faustin-Archange Touadéra (@FA_Touadera) June 14, 2022
It’s All About Balance
The Bitcoin delegation expressed their concerns about lack of access to the internet and electricity in general. For instance, Bangui has good electricity integration, while most of the rural areas still can’t access electricity, not to mention the internet. The Bitcoin adoption would go smoothly only if there’s no economic diversion in the country.
On the other hand, the Central African Republic is already in collaboration with the Bank of Development of Africa to install fiber optic cables, which would cover 70% of the area, meaning that 9 out of 10 citizens would be able to access the internet easily. There are also plans to make the fiber optic available to the public as soon as this month.
Furthermore, the fact that mobile payments are already a very popular means of payment in the country sets a great foundation for Bitcoin (BTC) to be implemented in everyday transactions. The Bitcoin delegation recommends that CAR install Bitcoin cash machines in safe areas in partnership with the 12,000 mobile retailers in the country.
On the Flipside
- The World Bank disapproves of the Central African Republic’s plan to adopt Bitcoin as legal tender