The Central African Republic 's acceptance of Bitcoin (BTC) is at risk, the IMF says

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

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About the Author: Debelloir Mara

Deputy editor of Cryptoast, I fell into the cryptocurrencies pot a few years ago. I am passionate about the innovative technologies emanating from the blockchain and love to share the crispy information with you.
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