The Central African Republic has adopted Bitcoin as its official currency, the presidency announced on Wednesday, making it the first country in Africa and the second in the world to do so. Despite its rich gold and diamond reserves, the Central African Republic is one of the poorest and least developed countries in the world and has been plagued by guerrilla violence for years. A bill governing the use of cryptocurrencies was unanimously approved by parliament last week, according to a statement signed by Obed Namsio, chief of staff to President Faustin-Archange Touadera. “The president supports this bill because it will improve the conditions of the people of Central Africa,” Namsio told Reuters, without elaborating. In the statement, he described it as “a decisive step towards the opening of new opportunities for our country”. The Central African Republic is one of six nations using the Central African CFA franc, a regional currency governed by the Bank of Central African States (BEAC). Two of the country’s former prime ministers signed a letter last week expressing concern over the adoption of Bitcoin without guidance from the BEAC, calling it a “serious offense”. “BEAC has learned at the same time that a new cryptocurrency law is being enacted in the Central African Republic,” a BEAC spokesman told Reuters, adding that the bank had not yet received a formal response. El Salvador became the first country in the world to adopt Bitcoin as legal tender last year, but circulation was hampered by skepticism and it postponed a proposed Bitcoin bond in March amid turmoil in the global market. African governments have taken a diverse approach to regulating cryptocurrencies and blockchain technology. Nigeria’s central bank banned local banks from cooperating with cryptocurrencies last year before launching its own digital currency, eNaira. South African regulators are investigating possible regulation of cryptocurrencies and other blockchain technologies, and Tanzania’s central bank said last year it was working on a presidential directive on cryptocurrency preparation.
