Crypto victory: Central African Republic adopts bitcoin as legal tender.

5 comments-0 reblogs
avatar of @fabian98
LeoFinance Badge
a year ago - 3 minutes read

Hello everyone...

On previous occasions I have commented that the adoption of cryptocurrencies will come first from small nations or with a weak or undervalued economy, since in those cases adopting a cryptocurrency as legal tender will make the economy stronger and will make it come out on top, avoiding problems such as uncontrollable inflation and exchange rate problems that exist in fiat currencies.

In addition, such a radical change in a small country's monetary policy can open many doors to foreign investment, since it connects in an easier way to the world economy, and finally another of many benefits that a small nation can see by adopting cryptocurrencies as legal tender, is that it can enjoy greater transparency.

These and more benefits are being enjoyed by El Salvador, which is already showing signs of improvement in the economy since the bitcoin law was announced, such as: 45% increase in tourism, foreign investment and interest, and new projects such as Bitcoin City and Bitcoin Bonds.

image.png SOURCE

That is why other countries that are also small and developing, can see as a great solution to the stagnant economy to make cryptocurrencies their legal tender, and this has been the case of the Central African Republic, which recently announced that it will adopt bitcoin as legal tender on par with the Central African franc, This comes after this country legalized cryptocurrencies. This law center franc was presented by the Minister of Digital Economy, Posts and Telecommunications Justin Gourna Zacko. With which it is intended to give a new direction to the central African republic.

Why is this big news and what benefits can it bring to the economy of the Central African Republic?

Let's see...

Why is this great news?

The Central African Republic is a very young country in terms of independence, having gained it on August 13, 1960, but even the history of the Central African Republic to date has been plagued by wars, coups d'├ętat and civil rebellions. This has made the Central African Republic's economy weak and not fully developed.

That is why the adoption of bitcoin as legal tender can make the economy flourish and show signs of growth, since one of the main economic activities of this country is the exploitation of agricultural and natural resources, it also has a subsistence agriculture based on cassava, corn, peanuts, and to a lesser extent cocoa and some coffee is exploited. European and Asian countries are the main buyers.

If bitcoin or another cryptocurrency were used to make these business deals, all processes are streamlined which would make this Central African country could increase its export capacity. In addition, many visionaries or companies would install their companies since this serious cryptocurrency friendly country, these companies can be exchanges, crypto mining, among others.

Another point to take into account is that the Central African Republic has in its territory two economic prefectures, which could become places of free trade for cryptocurrencies, something like the Bitcoin City of El Salvador.

What benefits can it bring to the economy of the Central African Republic?

Because there are many benefits in the short, medium and long term....

image.png SOURCE

In the short term: A massive adoption of cryptocurrencies, which opens a bigger door to international trade and makes local trade flourish in Central Africa. As trade agreements will be easier and faster.

Medium term: Attention from companies looking for cryptocurrency friendly and flexible locations, in other terms, plus tourism in Central Africa can increase significantly.

Long term: government plans and projects to create strategic zones where crypto trade is free, which will strengthen the nation's purchasing power. In addition to economic plans such as bonds, pallets, education projects to boost adoption even further and even bring it to neighboring countries.

Of course, remember that the Central African Republic is a place plagued by war, corruption and abuses of power, so it may take a little longer for the benefits of adopting cryptocurrencies as legal tender to become visible.

In reality, the benefits can be endless when it comes to crypto. But the most important thing is to see how globally countries are beginning to see that cryptocurrencies are a real solution, which is why in the remainder of the year we may see more countries adopting cryptocurrencies.

Posted Using LeoFinance Beta