Bitcoin is now also legal in the Central African Republic

distance El SalvadorIt’s up now Central African Republic Announcing the legal tender of bitcoin within the country, the first to do so on the black continent. Indeed, the National Assembly has decided to unanimously approve a bill that, in addition to legalizing virtual assets, provides a well-defined regulatory framework and accepts BTC as legal tender.

A decision immersing itself in a very problematic context, a context that sees aThe economy is in great difficultyWhich the government clearly decided to respond to by opening up to financial innovation. An important decision, especially as it may soon push other African realities to follow suit, confirming the impression that there is a trend towards true mass adoption of cryptocurrencies.

Central African Republic in the footsteps of El Salvador

The bill discussed by Parliament was presented by the Minister of Digital Economy, Postal Services and Communications, Gorna Zaku, and the Finance and Budget Bill, Calixte Nganongo. Of course, in the demo stage, internal sources focused on Benefits That investments in the latest generation technologies, starting with the blockchain, will be able to bring citizens into the processes related to everyday life.

In fact, this is a not insignificant novelty, if we take into account that Satoshi Nakamoto looked at Africa in the drafting of the Bitcoin white paper, in which he emphasized the intention In this way, accelerating the financial inclusion of hundreds of millions of people in every corner of the world Today we are still without basic tools to manage their assets.

Therefore, the African country is moving in the direction that El Salvador has already taken a few months ago, although it remains to be seen whether the obligation to accept cryptocurrency tokens in daily payments will be punished, as the small country did. Central America or, if the right to do so, on the contrary, will be left to the persons directly concerned. An issue of no small importance, which is precisely the commitment in question, which the Salvadoran government has denied, has provoked heated protests.

How will the IMF react?

Among the issues related to the Bangui government’s move, there is also that of Expected reaction from the International Monetary Fund. Already on the occasion of the approval of the Bitcoin law proposed by Nayib Bukele, the International Monetary Fund has published it disappointmentwhich will now be re-proposed in all likelihood in the face of the decision of the small African country.

It should be noted that the economic situation of the Central African Republic is considered very problematic at the moment. In fact, nearly 5 million citizens reside within national borders, although there is enormous wealth in the ground (gold, diamonds and uranium, in particular) unable to free themselves from a state of extreme poverty. So much so that they are practically related to international aid.

International aid that the International Monetary Fund can refuse, to put pressure on the government, as has already happened against El Salvador. The reason for this opposition is indicated by the macroeconomic risks associated with the adoption of cryptocurrencies as a legal payment instrument, but there are not a few critical observers who claim that it is merely a means of protecting the existing financial institution, which is the traditional approach. One.

Which country will be next to pick BTC?

If El Salvador and the Central African Republic have indeed opted for legal tender for bitcoin, many are wondering if other countries are ready to follow in their footsteps. In this regard, there is one to report Statement by Max Keizer, journalist and well-known BTC evangelistwho said earlier this year that he is confident of that A country in Latin America is preparing to adopt it.

According to Keizer, the event will take place during the second semester and he has also indicated a shortlist of candidates, consisting of Paraguay, Panama, Venezuela, Brazil or Argentina, all countries that, for one reason or another, have already convinced virtual assets.

Among the most interesting statements he made in the course of the interview that caused a sensation, however, we must also remember the very violent statements against the IMF. Defined by Keizer as a “walking dead,” to explain his opposition to Satoshi Nakamoto’s icon would be precisely the fact that many small countries may decide not to ask for his loans anymore and opt for Bitcoin.

If this happens, what was once will practically collapse An institutional tool for global neoliberalism over the past few decades. It is precisely this, according to Keizer, that would explain the aversion shown towards El Salvador, whose bitcoin cryptocurrency is clearly seen as an attempt to break free from what is increasingly seen as a cage.

Tonga case

To the cases we have already mentioned, we must then add the case it represents Tonga, which hasn’t been talked about much. The small country depends primarily on remittances from immigrants, which is much larger than the remaining population, which is currently estimated at 100,000 people.

Earlier this year, the island’s former parliamentarian, Lord Fositoa, president of the Global Organization of Parliamentarians Against Corruption, summed up in a message posted on Twitter what had happened in relation to a bill very similar to the one approved by El Salvador. .

After it was approved by the local parliament, the law was sent for examination by the king and the royal council, and it was immediately approved. After another pass with the government, to get its final approval, Now she is practically waiting for the date of its entry into force.

According to Lord Fusitwa himself, it is thanks to her that the small Polynesian island will be able to increase income by 30%. A significant increase in national wealth can translate into additional strengthening of the national economy.

However, in order to truly benefit from the virtuous cycle unleashed by BTC, Tonga will have to be able to overcome this significant bottleneck. Currently, in fact, only half of the territory that makes up the archipelago is covered by the Internet, at least according to data from the World Bank.

Read alsoCryptocurrencies will win over traditional funding, according to Bitstamp

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