One of the most surprising news in the cryptocurrency market and the entire world was the Central African Republic adopting crypto as a legal tender of transaction. This news shocked the world in more ways than people imagined. Although many were shocked, they stopped following the progress and activities after the adoption. This article provides information on what has been happening since then to the country and the adoption. It also presents information about the impact this has had on other countries in the region and the people.
Reaction
The first reaction to the news that the government had passed a bill legalising Bitcoin and other cryptocurrency tokens to be used as legal tender for transactions was a shock. This was a shock even for the Central Bank since they were not informed. After the shock, people and organisations started expressing their support and objections to the bill. Some of the reactions aired include: The first was from the neighbouring countries.
Many countries in the region use the West African Franc. When one of the countries from the region shows that they are changing their economy to cryptocurrency, it weakens the currency. This reason made people and organisations from the neighbours harsh and negative about the bill. Although this is the reaction they had, they may change their mind if the bill reaps positive results and the country can free itself from the shackles of its economy has been controlled by the French Central bank and government.
The second reaction from powerful people and organisations was from the International Monetary Fund. Many African countries have huge loans from organisations that have helped develop infrastructure and many more activities. The IMF is one of the biggest and most awful organisations in many African countries. As a wise man once said, “You do not bite the hand that feeds you.”
The IMF has shown concern about adopting crypto and fear of huge losses. It’s still to be seen if the IMF will be against crypto adoption in the Central African Republic and what they will do if it’s adopted. The World Bank has also shown some concern and a lack of support for the project. The organisation offered the country $35 million as a loan for several activities. The loan came with measures that the money should not be used in any projects the government has to develop their cryptocurrency adoption.
The citizens in the country have mixed reactions between those who support it and are against it. Many sponsors who help the government and the people also showed they were hesitant about cryptocurrency adoption. The sponsors are afraid of their money losing value or ending up in the wrong hands. Many of the citizens fed up with the inflation rate and other economic problems see this as an opportunity to have a currency that will hold its value and improve the economic situation in the country.
Huddles
Cryptocurrency adoption in the Central African Republic has multiple hurdles people must overcome. With every newly implemented practice, there will always be challenges that people have to overcome. Some of the hurdles that the country has to overcome include the following:
The first problems many consider one of the worst challenges are conflicts and wars in the country. Insecurity and conflicts are common in the country, and one of the main problems causing reduced development speed in the country. Conflict will make it hard for the government to install the infrastructure required to ensure a high adoption rate and practices.
The second problem is a dying economy. The economy in the country is struggling. This is a huge problem considering the investment required to implement the changes. It will be hard to transform an economy that is on its knees. Another huge problem the government faces is the internet infrastructure in the country. Currently, only 11% of the entire population has access to the internet. Internet access is one of the most critical components in cryptocurrency transactions and investments. The country also struggles with little electricity production. The county will have to increase the electricity produced to help people access and use cryptocurrency. This is a huge investment opportunity for people who want to invest in Africa.
Policies
Although the Central African Republic faces many hurdles and challenges that limit its ability to adopt cryptocurrency, they have set up policies to help take things one step at a time. This game plan will help the government adopt practices slowly to improve cryptocurrency adoption and the success rate of the practices. Some of the policies in place include:
The first policy is to set up a platform to help people buy land in the country using cryptocurrency. This will greatly impact the real estate market and help the adoption rate. Due to the poor economy, people prefer holding hard assets in the country.
If people start using crypto to buy and sell land, this will create trust and help people adopt it in other economic practices. The second policy the government uses to help increase the adoption rate is introducing cryptocurrency economic zones. This will act the same as Akon City and be a city, town, or region with the infrastructure required for crypto adoption where people and organisations can use it in all practices. This will help solve the problem of internet access and electricity. The cryptocurrency economic zones, called Sango, will have all the infrastructure required and give the government time to improve the infrastructure in the rest of the world.
Future
The future for cryptocurrency in the Central African Republic and the rest of Africa is bright. CAR has shown other countries that cryptocurrency can be adopted to solve many of the problems many African countries are struggling with.
If the crypto crush ends and Bitcoin and other tokens can gain value, the country will be one of the richest countries with the best crypto market in Africa. This has also shown other countries with struggling currencies that cryptocurrency is the way to go. More people will invest in cryptocurrency and the cryptocurrency economic zones, creating a good business environment while more investors come in to offer the required infrastructure.
