The Central African Republic is reportedly passing a law regulating crypto usage


Central African Republic (CAR) has become the center of a hot buzz in the crypto world after various reports of Bitcoin (BTC) adoption similar to El Salvador emerged. However, contrary to popular headlines, the African nation has not adopted BTC as legal tender, but has reportedly legalized the use of cryptocurrencies in financial markets.

The cryptocurrency bill was introduced on April 21 by Justin Gourna Zacko, Minister for Digital Economy, Posts and Telecommunications, and passed unanimously by lawmakers in Parliament despite protests from the opposition, RFI reported.

The crypto law aims to create a favorable environment for the inclusive growth of the crypto sector in the region. Minister Zacko also highlighted the growing difficulties in sending money out of the African nation and believed that the adoption of crypto would help solve this problem.

The new law would reportedly allow merchants and businesses to make crypto payments and also allow tax payments in crypto through authorized entities.

The new crypto law also made provisions for criminals who break the laws. According to one report, offenders could face up to 20 years in prison and a fine of between 100,000,000 and 1,000,000,000 Swiss francs from the Financial Community of Africa (CFA).

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Gloire, the founder of Kiveclair, a Bitcoin Beach-inspired refugee project in Congo, explained the details of the new law, telling Cointelegraph:

“The real impact for people is that they can now access currencies other than the FCFA (which is the local currency) while being protected by law and can transfer money at a lower cost. Most notably, they can conduct financial transactions without banks (while being protected by law). “

A total of 14 countries use the euro-pegged CFA franc, which is printed in France and whose monetary policies are controlled by Western powers. While the official bond was set at 1 euro to 655.96 CFA francs, the Fiat has been losing value for some time. Therefore, Bitcoin and other cryptocurrencies are gaining popularity in countries affected by the national economic crisis.