Central African Republic Passes Bill Legalizing Use of Cryptocurrencies

Aaryamann Shrivastava
Published: Apr 25, 2022, 18:09 GMT+00:00

The bill will establish a legal framework for governing cryptocurrency as well as creating a favorable environment for the financial sector.

Central African Republic Passes Bill Legalizing Use of Cryptocurrencies

Key Insights:

  • The Central African Republic is the first country in the region to legalize cryptocurrencies.
  • The bill was introduced by the Minister of Digital Economy, Gourna Zacko.
  • Cryptocurrency adoption continues despite the apprehensions from governments.

Today, the National Assembly of The Central African Republic voted on the Draft Law Governing Cryptocurrency, which was adopted favorably by acclamation and unanimity. 

The Central African Republic Gets Crypto

The legislation was introduced into the Assembly by the minister of finance and budget, Calixte Nganongo, and the minister of the digital economy, postal services, and telecommunications, Gourna Zacko.

This would establish the legal framework for cryptocurrency regulation in the country while also establishing Bitcoin as an officially accepted currency.

The purpose behind the approval of the legislation was twofold. One was to introduce and create a legal framework governing cryptocurrency and the establishments handling these currencies (ex. – exchanges, lending and borrowing platforms, etc.).

And secondly, through the bill, a favorable environment for the financial sector will be established that will be set to meet the needs of the profession in this sector and all economic actors.

Commenting on the reason behind introducing the bill, Gourna Zacko said,

“With crypto-currency, there is no more control of the Central Bank. You have your money, you send to an investor for a business, you receive it in any currency, you can dispose with it in Dollar, Euro, CFA, or Naira”.

The effect that El Salvador had on the world and the crypto world with the adoption of Bitcoin as legal tender and the policies introduced favorable to the same is visible in this decision as well.

Other Governments Accept Crypto Too

While the Biden administration of the United States of America is yet to give a concrete status to cryptocurrencies, many leaders of the States have already implemented changes in their power.

Recently as reported by FXEmpire, the Governor of Colorado, Jared Polis, announced that the state would begin accepting payments of taxes in cryptocurrency by this summer.

And following him, the State Senator of California Sydney Kamlager laid down a proposal for accepting cryptocurrencies for payments for the provision of government services.

Although the market continues to trend downwards, the expanding adoption of cryptocurrencies will undoubtedly help in recovery.

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

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