Several financial experts in Africa have highlighted concerns in response to the Central African Republic‘s introduction of Bitcoin as legal tender.
According to analysts at a time when the regime is under UN criticism, there are suspicions that the only state to have accepted Bitcoin, along with El Salvador, is attempting to encourage fraudulent transactions.
President Faustin Archange Touadéra said that the poor Central African nation’s parliament had passed laws “regulating all transactions” in cryptocurrencies and establishing Bitcoin as a “reference currency” alongside the CFA franc.
Many People in CAR are Unaware of Cryptocurrency
In front of one of the city’s few ATMs, the legalization of Bitcoin is causing worry. “What exactly is it?” In line is Sylvain, a 30-year-old male. “I don’t know what cryptocurrencies are; I don’t even have internet,” Joelle jokes as she stands in front of her tiny vegetable stall.
Government spokesperson Serge Ghislain Djorie assured AFP said: “We will educate the population and soon switch to fiber optics and a weak internet connection is adequate to acquire cryptocurrency.
Notably, since CAR adopted Bitcoin, the premier digital asset has seen its price plummet below $36,000. However, the asset is now trading slightly above this level at $36,048.56, up 0.04 percent on the day but down 6.63 percent in the previous week.
The legislation is causing worry even among the few businessmen who are expected to have the finances, skill, and technology to take advantage of it.
I have no interest in having Bitcoins here because we lack the infrastructure and knowledge to embark on this adventure, and there is no cybercrime unit to ensure security,” said an entrepreneur in Bangui, the capital of the Central African Republic. There are other priorities such as security, energy, access to water, internet, road construction…
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