Despite Downturns, Central African Republic President Champions Crypto

The Central African Republic was the first country in Africa and the second in the world to make bitcoin an official currency, and its president has said crypto can help bolster financial inclusion, Reuters reported Sunday (June 3).

The country has enormous wealth in gold and diamonds but remains impoverished and underdeveloped, per the report. In April, the country’s parliament passed a measure embracing cryptocurrency. At the time, Obed Namsio, chief of staff to President Faustin-Archange Touadera, said that the president supported the bill “because it will improve the conditions of Central African citizens.”

According to Reuters, Namsio characterized the measure as “a decisive step toward opening up new opportunities for our country.”

On Sunday, Touadera spoke at a launch event for the Sango crypto initiative, saying that cryptocurrency is a good alternative to the cost of using traditional bank accounts.

“The alternative to cash is cryptocurrency,” he said. “For us, the formal economy is no longer an option.”

Six countries in central Africa use the Bank of Central African States (BEAC) and the Central African CFA franc as a currency. According to Reuters, two former Central African Republic prime ministers came out against the country’s adoption of cryptocurrency without the approval of the regional central bank.

The central bank released a statement at the time and said “the BEAC learned at the same time as the public of the enactment of a new law on cryptocurrency in Central African Republic,” and a spokesman had no further comment.

The first country to adopt cryptocurrency as an official currency was El Salvador, although other countries have acted similarly. Nigeria’s central bank issued a digital currency called the eNaira, which will work on phones with SMS capabilities, and the report noted that regulators in South Africa and Tanzania are examining the possibility of adopting cryptocurrencies in their countries.

Read more: Report Says CBDCs Can Outdo Crypto; Fed’s Powell Sees Role in Strengthening Dollar

Last month, PYMNTS wrote that authorities in the Philippines and Vietnam are examining central bank digital currencies (CBDCs), having selected Japanese blockchain firm Soramitsu to study the offerings.

Sign up here for daily updates on all of PYMNTS’ crypto coverage.