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What crypto adoption means for the Central African Republic

The Central African Republic has legalized Bitcoin as a means of payment. Citizens of a country where access to banking is difficult now have access to currencies other than the local FCFA, and their payments and remittances are protected by law.
What crypto adoption means for the Central African Republic
What crypto adoption means for the Central African Republic
The new law will allow payments in cryptocurrencies, including tax payments
The new law will allow payments in cryptocurrencies, including tax payments
Cryptocurrencies in Africa are forming the basis for business and investment
Cryptocurrencies in Africa are forming the basis for business and investment
The adoption of cryptocurrencies can provide a financial infrastructure for entrepreneurship
The adoption of cryptocurrencies can provide a financial infrastructure for entrepreneurship
The FCFA (Franc Communauté Financière Africaine) is used in 14 African countries, but it is a weak currency that is constantly losing value. Its face value is pegged to the euro, it is printed in France, and it is under the control of Western powers.
Details of the adopted law
An African country has legalized the use of cryptocurrencies in financial markets instead of accepting BTC as legal means of payment, as El Salvador did last year. However, the reasons and goals for these laws are the same: Central African Republic officials believe the cryptocurrency law will solve the country's growing difficulties with international payments and the unavailability of banking services. The new law will allow individuals and businesses to make payments in cryptocurrencies, including paying taxes.
The challenges of the country
The territory of CAR is rich in resources. The country produces diamonds, gold, oil, and uranium ore, but due to constant instability and years of civil war, it is one of the most troubled places in the world. In 2021, the republic ranked second to last on the Human Development Index. International organizations estimate that about half of the republic's population requires humanitarian assistance.

While banks and financial institutions in developed countries offer services related to cryptocurrencies to give their customers a taste of something new, cryptocurrencies in Africa could become an important financial tool for development and form the basis for business and investment.
The new law will allow payments in cryptocurrencies, including tax payments
The new law will allow payments in cryptocurrencies, including tax payments
Cryptocurrencies in Africa are forming the basis for business and investment
Cryptocurrencies in Africa are forming the basis for business and investment
The adoption of cryptocurrencies can provide a financial infrastructure for entrepreneurship
The adoption of cryptocurrencies can provide a financial infrastructure for entrepreneurship
Held-back potential is gaining traction
African countries have much more development potential than people in Western countries think. The populations of these countries are young and ambitious. According to the Ichikowitz Family Foundation's Youth 2020 Survey, 75% of young Africans plan to start their own business in the next five years, and if they had $100 to invest, 50% would invest in their own business. Two in three say they already have an idea for starting a business. African women also show a strong appetite for entrepreneurship; they make up 58% of the continent's self-employed population.

For entrepreneurship to be successful in Africa, a few key points must be addressed. Cryptocurrencies can solve many of these issues, including the availability of financial instruments, facilitation of cross-border trade, and the transparency of financing. Steps by African countries to adopt blockchain and cryptocurrencies could rapidly change the economic landscape of the continent.

Since 2012, CAR has been suffering war between rebel groups and the incumbent government, whose troops are supported by UN peacekeepers. Military intervention and the presence of peacekeepers have not saved CAR from civil war. But the desire for development and the resources available for that development can help groups with different political and religious views to coexist and cooperate peacefully.
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