The IMF is hostile to the adoption of Bitcoin by the Central African Republic
This was the big news last week: the Central African Republic has accepted Bitcoin as a legal tender, alongside the CFA franc. It is the second country to take this path.after El Salvador in September 2021.
This is enough to worry the IMF, which had already sounded the alarm clock last year. The foundation considers that “Encryption” of certain economies, which we are currently seeing, is in danger. For her, this is a problem rather than a solution, in countries that are already financially fragile.
So Rebelote for the Central African Republic. So the IMF explained to our colleagues at Bloomberg:
“The adoption of Bitcoin as a legal tender in the Central African Republic poses significant challenges in terms of transparency, legality and economic policy.»
The institution identifies itself as such a resource, explaining that its staff are assisting the authorities of the Central African Republic and the region as a whole, “in order to respond concerns raised about the new law“.
👉 To go further – What is fiat currency?
Decision taken without consulting the rest of the monetary zone
As a reminder, Central African Republic it uses the CFA franc with 6 other states, members of Financial Cooperation in Central Africa. The decision was taken to take BTC without consulting them, and in particular without consulting the governor Central African State Bank (BEAC). These are also the two points that have raised concerns at the regional and global level.
Other questions were raised: Internet access is underdeveloped in the Central African Republic, but Bitcoin transactions are necessary. Only 557,000 inhabitants would have access to itout of the 4.8 million in the country.
So, we will look carefully at the spread of this new currency in the Central African Republic. Apart from risk considerations, this again highlights one thing: the most vulnerable economies are turning to Bitcoinunresolved in the classical monetary systems.
👉 More information on the same subject – Central African Republic accepts Bitcoin (BTC) as legal tender
Get a crypto news feed every Sunday 👌 And that’s it.
What you need to know about affiliate links. This page presents assets, products or services related to investments. This article contains some affiliate links. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. You are not affected and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and may not be responsible, directly or indirectly, for any damage or loss that has occurred following the use of the product or service highlighted in this Article. . Investments involving crypto-assets are dangerous in nature, readers should do their own research before taking any action and only invest within the limits of their financial capacity. This article is not investment advice.