Bitcoin: Will the cryptocurrency succeed as legal tender in the Central African Republic?

The Central African Republic has become the second country to adopt the cryptocurrency as legal tender, but experiences in El Salvador, the first nation to do so, point to a gloomy outlook

Technology


| Analysis

9 May 2022

An artist’s impressions of bitcoins with the flag of the Central African Republic

Shutterstock/esfera

The Central African Republic (CAR) has become the second country to make bitcoin legal tender, but economists say the project has little chance of succeeding.

As of 20 April, the cryptocurrency must be accepted as payment alongside the existing currency, the CFA franc, in a move that aims to put the war-torn nation’s economy “on the map of the world’s boldest and most visionary countries”, the CAR presidency said in a statement.

But if events in El Salvador – the first country to make bitcoin legal tender, in September 2021 – are anything to go by, the CAR’s experiment will probably flop.

El Salvador’s president Naybib Bukele introduced bitcoin…

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