The Central African Republic (CAR) has established a committee of 15 members to ratify and pass legislation regarding incorporating cryptocurrencies within its borders. This is another step in the nation’s bid to facilitate implementing and accepting cryptocurrencies as a means of payment.
Faustin-Archange Touadera, the president of CAR, firmly believes cryptocurrency is the future; he trusts cryptocurrencies’ ability to link financial sectors. He intends to create a unique business environment supported by a legal framework for cryptocurrency use.
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In an official press release, he stated: “By having access to digital currencies, all previous money limitations will vanish.” The government is determined that this step will boost national economic growth.
A 15-man committee has drafted the country’s crypto bill with representatives from five key ministries: the Ministry of Mines and Geology; the Ministry of Waters, Forest, Hunting, and Fishing; the Ministry of Agriculture and Rural Development; the Ministry of Town Planning, Land Reform Towns, and Housing; as well as the Ministry of Justice Promotion/Human Rights and Good Governance.
Through creative collaboration, committee members will have to create a legal structure that will allow cryptocurrencies to be used in the Central African Republic and expedite financial advancement within the country.
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History of cryptocurrency in the Central African Republic
The Central African Republic (CAR) became the first African country and the second globally, after El Salvador, to approve Bitcoin as a legal tender in April in 2022. It was a landmark achievement in the space, which was lauded by prominent blockchain personalities like Binance’s CZ.
To follow up the development, CAR president, Faustin-Archange Touadéra, rolled out a project aimed at expanding the country’s blockchain infrastructure, known as the “Sango Project.” The project concept includes several plans to attract worldwide crypto businesses and enthusiasts. According to its website, the Sango project aims to “pave the way to an unending digital future.”
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Cryptocurrency regulations in other African countries
According to Chainalysis, Africa is one of the fastest-growing crypto markets in the world. However, it is also the smallest, with crypto transactions and activities reaching $20 billion per month in mid-2021.
The following African countries boast the highest number of users in the region: Kenya, Nigeria, and South Africa. Many people in these nations use cryptocurrencies for commercial payments, but their volatility makes them unsuitable as a store of value.
TechNext reported that Nigeria is working to ratify a bill regulating cryptocurrency activities. In the report, Ibrahim Babangida stated,
“Recently, there have been a lot of changes within the capital market, especially with the introduction of digital currencies, commodity exchanges, and so many other essential things that need to be captured in the new Act. As I said, it is better to talk about this after consideration of the reports.”
“All these are some of the issues that we have considered. We have to regulate them. It is not that they are illegal, but we don’t have regulations for them. So, these are some reasons we need to review the Act and put some regulations for most activities—derivatives, commodity exchanges, digital currencies, and so many other things.
With more crypto bills drafted to protect African traders, the market is set for a massive boost in the coming years.
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