Mon. Feb 26th, 2024

Bitcoin It ceased to be the official currency of the Central African Republic last Thursday (23), after the approval of a bill in the country. Despite the approval in the National Assembly, it is not clear when they will enter into force. In any case, the second country to adopt bitcoin as a currency it withdrew from its position, again leaving only El Salvador with legal tender. It should be noted, however, that not only bitcoin loses its official currency status, but also the CFA franc, which loses its legality as the country’s currency. The information was shared by the country’s political scientist, Gaetan Kongo, who last Wednesday (22) warned about the discussion of the bill. On the occasion, Kongo recalled that the National Assembly would discuss and vote on the changes.

“The bill that reforms and adds Law No. 22,004 that governs cryptocurrencies will be debated and voted on tomorrow, March 23, in the National Assembly. Big change, the Central African Republic will no longer consider Bitcoin as an official currency along with the CFA franc.”

President asked for changes

With the law passing in the National Assembly, President Faustin-Archange Touadera may still need to validate the proposals. Publicly, the bitcoin-supporting president has yet to comment on the case. However, since he himself called a colloquium on the subject in January 2023, everything indicates that he agrees with the rule changes. Since the Central African Republic adopted bitcoin in April 2022, it didn’t take even a year to go backwards. It is worth remembering that there was intense international pressure on the country, even from the IMF. In addition, the frequent devaluations in the price of cryptocurrencies, as well as the bankruptcy of global companies, may have led the country to review the law.

Bitcoin loses official currency status in the Central African Republic to become a reference currency

The difference between an official currency and a reference currency indicates that bitcoin loses its morale with the local government, but it should not suffer. This is because, as legal tender, Central African Republic it would free bitcoin for its legal use as a means of payment in the country. Therefore, a merchant would have to accept the currency, while their customers would only be able to use that currency for purchases. But as a reference currency, it becomes optional to accept bitcoin. Its function now is to compare itself with the value of other currencies. For example, the dollar is a currency used in international trade to calculate the price of products, as a reference. Anyway, bitcoin does not depend on governments to survive and the laws do not much affect their adoption. In other words, despite the fact that it is no longer an official currency, the population can continue to use it normally, since the country has not prohibited the use of digital currency.

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By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.