The chaos that erupted after the Central African Republic adopted Bitcoin as its legal tender in April was caused by confusion, disagreements and then the concern of global organizations such as the World Bank.
In a country with 4.8 million inhabitants, only 11% have internet access and 14% have electricity. According to Bloomberg Crypto, Friday (16 September), CAR’s daily life has not changed much since Bitcoin was introduced.
“Not much has changed on ground as far as my knowledge,” Katarina Hoije, a Bloomberg reporter, stated on the episode.
“Many people don’t have bank accounts. It’s a very poor nation. She said that most people would not be able invest in bitcoin.
Hoije stated that CAR is among the most isolated countries in the world, and also has the lowest GDP.
However, this hasn’t stopped CAR from moving ahead and launching its cryptocurrency, the Sango coin in July. It also continues to encourage investments in the country’s mineral sectors. CAR is home to large amounts of natural resources such as gold, diamonds and other minerals.
Hoije stated that the country was trying to attract investors into these sectors when it launched bitcoin as legal tender.
At a launch event held in July, President Faustin-Archange Touadera introduced the Sango coin. He also explained some of the benefits to investing. He called cryptocurrency the future of the country.
Hoije stated that investment perks such as e-residencies (which don’t exist in the country’s constitution) were being offered. He also mentioned the possibility to buy land and obtain Central African citizenship.
PYMNTS reported that these investment incentives were declared unconstitutional last month by the Central African Republic Constitutional Court.
Hoije stated that Bitcoin was legal tender in the country due to the President’s push for it.
Even though CAR has a low internet penetration, El Salvador isn’t seeing much traction one year later. El Salvador was the first country to accept bitcoin as legal tender. However, making Bitcoin legal tender does not mean that it will be used.
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