Lawmakers in the Central African Republic on Wednesday unanimously approved the Bitcoin as legal tender.
This implies that Bitcoin can now be accepted alongside the CFA Franc.
The CAR is one of six central African countries (Cameroon, Chad, Republic of Congo, Gabon and Equatorial Guinea ) that share the CFA franc — a regional currency that is backed by France and pegged to the Euro.
Opposition leaders are apparently challenging the move and are concerned that it will impact on the CFA Franc.
El Salvador was the first country to adopt Bitcoin as legal tender, in June 2021 (click here).
The IMF criticized the move out of fear of financial stability and integrity, as well as consumer protection.
El Salvador also launched an app, called “Chivo Wallet,” which allows users to digitally trade both Bitcoin and Dollars without paying any transaction fees.
As an incentive to adopt, citizens who downloaded this app received a $30 Bitcoin bonus from the government.
Interestingly; a recent study by the National Bureau of Economic Research found that only four out of ten Salvadorans who downloaded the Chivo Wallet said they still use it after obtaining the $30 incentive.
