Central African Republic adopts Bitcoin as official currency

CAR is one of the world's poorest countries, but is rich in diamonds, gold, and uranium. It has been wracked by conflict for decades and is a close Russian ally, with mercenaries from the Wagner Group helping fight rebel forces. 

Lawmakers voted unanimously to adopt Bitcoin as legal tender, said a statement from the CAR presidency. El Salvador became the first country to adopt Bitcoin as an official currency in September 2021, a move criticised by many economists, including the International Monetary Fund, which said it increased the risk of financial instability.

Others have raised fears that cryptocurrencies such as Bitcoin could make it easier for criminals to launder money, and that they are environmentally damaging because they use so much electricity to generate. The internet is needed to use any cryptocurrency but in 2019, just 4% of people in CAR had access to the web, according to the WorldData website.

The country currently uses the France-backed CFA franc as its currency, along with most other former French colonies in Africa. Some see the adoption of Bitcoin as an attempt to undermine the CFA, amid a contest for influence over the resource-rich country between Russia and France.