Bitcoin – As part of its efforts to adopt cryptocurrencies and blockchain technology as tools to support the weakened economy, the Central African Republic (CAR) has proposed to use Bitcoin as a reserve asset.
Following the adoption of a policy aimed at making BTC legal in the nation, CAR has decided to use the most valuable cryptocurrency as part of its national reserves. In April, the country became the first African country to officially recognize Bitcoin as legal cash.
The idea was devised by two politicians, Minister of Digital Economy Gourna Zacko and Minister of Finance Calixte Nganongo, and received support from the national legislature. The bill received a unanimous vote in the Senate and received the endorsement of officials.
The CAR followed up on its Bitcoin legalization bill with the Sango project, a blockchain-based platform to assist the country’s adoption of cryptocurrencies. According to the claims, Sango is a Liquid Network-inspired Bitcoin sidechain.
Sango is scheduled to debut on July 25 and is anticipated to operate as a layer 2 component of a digital monetary system.
Financial regulators in the CAR opposed the adoption of bitcoin
Although the Central African Republic’s senate supported the adoption of BTC, the action has drawn criticism from outside groups who think it would undermine rather than strengthen the country’s economic stability.
The International Monetary Fund voiced concerns and that the CAR think about taking a different path, much like it did in the case of El Salvador. A major financial institution that serves six countries, including the CAR, the Bank of Central African States, opposed the widespread usage of BTC.
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