Central African Republic To Create Legal Framework For Crypto

January 25, 2023 3:07 pm Comments

The Central African Republic is the latest country out of a long list of nations that have finally started to create a comprehensive legal framework for cryptocurrencies.

The African region is expected to be one of the regions in the world that will adopt crypto quickly as it lacks a lot of access to traditional banking services.

The president of the country mentioned that crypto will specifically help them remove all financial barriers and creating a pro-crypto environment is the first step to realizing this mission.

If the bill becomes successful, it could eventually allow the country and the rest of the African region to become a crypto hub much like the city of Dubai.

As a result, it will likely attract a lot of crypto investors and would bring a tremendous amount of new capital into the global crypto markets.

CoinTelegraph reports:

According to Faustin-Archange Touadéra, the president of CAR, cryptocurrencies can potentially help eradicate the country’s financial barriers. He believed in creating a business-friendly environment supported by a legal framework for cryptocurrency usage. A rough translation of the official press release reads:

“With access to cryptocurrencies, the monetary barriers existing until now will disappear, the main objective of the measures adopted by the government being the development of the national economy.”

The committee responsible for drafting the crypto bill comprises 15 experts from five ministries of CAR — Ministry of Mines and Geology, Ministry of Waters, Forest, Hunting and Fishing, Ministry of Agriculture ad Rural Development, Ministry of Town Planning, Land Reform, Towns and Housing and Ministry of Justice, Promotion of Human Rights and Good Governance.

One of the major use cases of crypto for the country is the fact that there is now over $5 billion in overseas transactions to and from the region.

Unfortunately, the current remittance system is extremely slow and is not efficient.

Through the use of blockchain and crypto, the remittance should become almost real-time and with almost no transaction fees.

The Central African Republic’s actions in the crypto space will also likely influence other nearby African countries to do the same.

If the whole continent of Africa follows suit, the market for crypto will have been expanded many times and its market cap will reach new highs.

CryptoPotato concludes:

The CAR became the world’s second country where bitcoin serves as an official payment method in April last year. El Salvador was the first to embrace the cryptocurrency as a legal tender in September 2021.

The authorities of the Central African Republic suggested that the adoption could boost the monetary recovery and improve the well-being of the residents.

President Touadéra has displayed himself as a keen supporter of the primary digital asset, describing it as “universal money.”

He also advised locals to acknowledge BTC’s merits which could help them generate long-term wealth in times when surging inflation, global military conflicts, and economic crises reign across the globe:

“Understanding bitcoin is crucial to acknowledge its disruptive power to bring long-term prosperity. Mathematics doesn’t account for human emotions. Future generations will look behind at these very moments to our strength and unity in choosing the right path during hard times.”

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