Is this good news for crypto adoption or terrible news for current happenings globally?
The Central African Republic has declared Bitcoin legal money, making it an official national currency for the first time. After El Salvador in September of last year, the CAR became only the second country to do so.
While this may appear to be excellent news for the crypto community and may aid in broader acceptance of the currency throughout the world, things aren’t always as black and white as they look.
Even though Russia just attacked Ukraine, the Central African Republic has long been a Russian friend. Concerns are growing that by confirming Bitcoin’s legality in the CAR, officials may be enticed to assist Russian residents in evading sanctions by using this digital asset.
Other warning flags include that just 4% of the country’s population has access to the internet, rendering Bitcoin legalization essentially meaningless. Some analysts believe this is an attempt to weaken the CFA franc’s local currency, which France supports and distances itself from French influence.
There were other candidates for the second country to embrace Bitcoin, including Honduras and Malaysia, and the Central African Republic’s involvement in this topic seemed to have sprung out of nowhere, especially when the rationale for the relocation is, at best, a bit hazy.