Central African Republic Becomes Second Country to Adopt Bitcoin as Legal Tender

The second country to declare bitcoin as the official currency is the ‘Central African Republic’ (CAR), a landlocked African country. Bitcoin will be considered the legal tender in the country. It is also the first African country to adopt Bitcoin as an official currency.

In September 2021, El Salvador became the first country in the world to introduce Bitcoin as official currency i.e. as legal tender. 

The parliament had unanimously adopted a week before, a bill governing the use of cryptocurrency. The move to consider bitcoin legal tender received praise from the crypto community. It was a decisive step toward opening up new opportunities in the country.

The CAR is rich in diamonds, gold, and other valuable minerals, but ranks as one of the world’s poorest and least-developed countries. According to the World Bank, 71% of CAR’s 5.4 million inhabitants were living below the international poverty line in 2020. It ranked near 188 in the UN Human Development Index in 2020 out of 189 countries.

The Central African Franc is the official currency of 6 countries including the Central African Republic and is governed by the Bank of Central African States (BEAC).

   Important points for the exam:

• The second country to declare bitcoin as the official currency is the ‘Central African Republic’ (CAR), a landlocked African country.
• It is also the first African country to adopt Bitcoin as an official currency.
• Hereafter, the Bitcoin will be considered the legal tender in the country.
• The CAR is rich in diamonds, gold and other valuable minerals, but ranks as one of the world’s poorest and least-developed countries.
• The Central African Franc is the official currency of 6 countries including the Central African Republic and is governed by the Bank of Central African States (BEAC).
• El Salvador became the first country in the world to introduce Bitcoin as legal tender. 

   Facts to know:

• Capital of CAR: Bangui.
• The official currency of CAR is: Central African Franc.
• El Salvador is a Central American country.