The Central African Republic Adopts Bitcoin as Legal Tender

Another country has made Bitcoin legal tender, this time it's the Central African Republic (CAR), making it the second country behind El Salvador to adopt the number one cryptocurrency.

The news was announced on Facebook through the official page of president Faustin Archange Touadera. He signed the bill after it was passed with no hesitation by the National Assembly.

Bitcoin will now be the country's official currency alongside the Central African CFA franc (XAF), a regional currency that is backed by France and used as well by Cameroon, Chad, Congo, Equatorial Guinea, and Gabon.

Many could point to inflation as to the adoption but contrary to public thought the XAF has a lower inflation rate than the U.S dollar. Statistics show it holds a 4.8% annual inflation increase, though it has seen a fluctuation in the past five years between 12 and - 3%.

The post signaled the importance of this move but was sparse with details about how this will actually be accomplished.

The presidential chief, Obed Namiso, being translated by the Associated Press of the French-speaking world, was quoted saying, "This move places the Central African Republic on the map of the world's boldest and most visionary countries."

This move puts the Central African Republic next to El Salvador as a Bitcoin adopting country. El Salvador made it legal in June of last year, with President Nayib Bukele spearheading the initiative. With the help of Bitcoin wallet partner Strike, they were able to make the currency readily available to all citizens with access to a smartphone.

El Salvador would not stop just at adding the currency to its balance sheet, later on, in the year, it was revealed that the country would harness the power of its volcanoes to power Bitcoin mining rigs.

Little is known about how CAR will make its bill into a reality as El Salvador has been able to, being one of the world's poorest countries, the Central African Republic is viciously dependent on foreign aid, agriculture, and diamond exports.