Cryptocurrency has continued to witness institutional adoption even though the market’s frenzy seems to have died down since last year. Besides financial institutions adding cryptocurrency to their payment structure, governments around the world are seriously considering how to onboard cryptocurrency or adopt it as a legal tender.
Last year, El Salvador became the first country in the world to adopt bitcoin as a legal tender, setting the pace that other countries are now following or considering.
On Monday, the National Assembly of The Central African Republic (CAR) voted on the Draft Law Governing Cryptocurrency, which was adopted favorably by acclamation and unanimity, FX Empire reported. The CAR thus becomes the first African country to adopt crypto as a legal tender.
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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 it to an investor for a business, you receive it in any currency, you can dispose of 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.
Unlike the CAR, other African countries are yet to create a policy framework on crypto. Some like Nigeria have made crypto transactions illegal even though the West African country is one of its biggest markets.
Although the global crypto market continues to trend downwards, the expanding adoption of cryptocurrencies is expected to help in recovery, boosting economies along the way.