Currently, there are just two nations in the world—El Salvador and the Central African Republic (CAR) that have accepted Cryptocurrencies as legal tender. There are, however, numerous rumours that claim several other countries will probably do the same.When Cryptocurrencies such as Bitcoin are accepted as legal tender in a given country, citizens of that country or state can use it to make purchases just like they would with fiat money. Meanwhile, anyone accepting Bitcoin for the sale of goods and services in a country without the Central Banks’ sanction runs the danger of being exposed or persecuted.
BTC was also made legal tender in the Central African Republic (CAR) on April 27. Despite having a wealth of natural resources, the CAR has remained one of the world’s poorest nations. The country will be prosperous in the future, according to President Faustin-Archange Touadera, who believes that BTC should be accepted as legal cash. Some experts think that by making this choice, the nation may lessen its reliance on the US Dollar and develop a sustainable economy.
On January 22, as reported by coin telegraph, the Central African Republic (CAR), a developing nation in the region, established a 15-person group to create legislation governing the usage of cryptocurrencies and tokenization there.
One of the major utilities most Blockchain projects in Africa are centred on over the years has been to solve and remedy the issue with the Traditional Financial System and to aid global remittance and Blockchain adoption.
The old international financial sector has undergone a change since the advent of blockchain technology. Cryptocurrencies have emerged as the financial system of the future thanks to their ability to decentralise.
The 15 experts are from these different ministries of the Central African Republic which are; Mines and Geology, Waters, Forest, Hunting and Fishing, Agriculture and Rural Development, Town Planning, Land Reform, Towns and Housing, and Justice, Promotion of Human Rights and Good Governance—make up the committee responsible for drafting the crypto law.
The goal of the members is to create a legal framework that allows the use of cryptocurrencies in the Central African Republic and accelerates the growth of the domestic economy.
CAR President Faustin-Archange Touadéra believes that cryptocurrencies have the potential to assist in removing the nation’s financial restrictions. He was dedicated to developing an atmosphere that was conducive to business and supported by a framework of laws that included the use of cryptocurrencies. The official news announcement is translated roughly as follows:
“The monetary restrictions that have existed up to now will disappear with access to cryptocurrencies, with the government’s initiatives primarily aimed at the growth of the national economy.”
Using cryptography as a means of solving this problem is quite logical. Using cryptocurrencies can help fill the gap and reduce the fees associated with cross-border transfers.
Other countries like, Venezuela,Ukraine,Saint Kitts and Nevis. According to CoinMarketCap, the United States and Russia are countries that will probably accept Bitcoin as legal tender.
What do you think would happen to your country’s economy is they accepted Bitcoin and other Cryptocurrencies as legal tender?
