The Central African Republic (CAR) has appointed a new committee tasked with designing legislation related to cryptocurrencies. Various Ministries have contributed 15 experts to the committee to develop the Central African Republic and create legislation regulating tokenisation in the country and the region. Several departments in the country, including some Ministries, have to form a cryptocurrency bill. The developing nation in Central Africa embraced Bitcoin as a legal tender in 2022, becoming the second after El Salvador.

The President of the Central African Republic (CAR), Faustin-Archange Touadéra, said in a statement that the government established a committee of experts to design a pertinent cryptocurrency regulatory framework. According to President Touadéra, cryptocurrency will break down the country’s economic hurdles and encourage the development of the digital asset industry. President of the Central African Republic Touadéra said, “With access to cryptocurrencies, the monetary barriers existing until now will disappear, the main objective of the measures adopted by the regime being the development of the national economy.”

The country’s crypto steps

The Central African Republic’s Ministry of Economy and Finance recently announced the formation of a special committee to design cryptocurrency legislation. Insiders at mentioned that the committee will be led by the Minister of Economy and Finance, Jean-Baptiste Nembou. The committee will also include representatives from the Central Bank of the Central African States, the Ministry of Digital Economy, the Ministry of Industry and Private Sector Promotion and the Ministry of Justice.

The new committee is expected to review current regulations on using cryptocurrencies and tokens and develop new legislation to create a favourable environment for developing the digital economy. The cryptocurrency bill is expected to address issues such as money laundering prevention, consumer protection and taxation. Other departments tasked to form the legislation include the Ministry of Water, Forests, Hunting and Fishing, the Ministry of Agriculture and Rural Development, the Ministry of Mines and Geology and others.

Boost For the country’s economy.

The Central African Republic’s committee team is tasked with drafting the crypto bill, and they are entrusted with working together to create a legal framework. The GDP of CAR is around $2.5 billion, and a GNI per capita of $980 and the use of cryptocurrencies in the country will hasten the growth of the country’s economy. President Touadéra believes that transitioning into the world of crypto could solve some of the financial issues.

President Touadéra said, “Understanding Bitcoin is crucial to acknowledge its disruptive power to bring long-term prosperity. Mathematics doesn’t account for human emotions. Future generations will look behind these very moments to our strength and unity in choosing the right path during hard times.” The President also advised the locals to acknowledge BTC’s merits as it could help them generate long-term wealth in times when there are global military conflicts, surging inflation, and economic crises that reign globally.

The approach toward developing a legal framework for using cryptocurrencies that the Central African Republic is taking is a positive step that will help the nation become more competitive in the digital economy. In addition, initiating a crypto-friendly legal framework by providing certainty and clarity to potential investors and assisting the country in attracting more foreign investments.However, the Central African Republic is one of many African countries that has already established regulations governing the use of cryptocurrencies; several other countries include Kenya, Uganda and Nigeria. According to CAR authorities, adopting cryptocurrencies could boost fiscal recovery and improve the well-being of the residents.

A Nigerian crypto exchange Roqqu has received a virtual currency licence from regulatory authorities in the European Economic Area after waiting for 2 years. According to the CEO of Roqqu Benjamin Onomor, the existing remittance system is inefficient, and every year off-shore Africans pay back over $5 billion to their family. Onomor said, “It makes a lot of sense to solve this problem by using crypto as the vehicle. Crypto is a faster and cheaper route that can bridge the gap and help reduce fees for moving money globally. This is the core of the problem we want to solve.”  

The President of Central African Republic (CAR) Touadéra has displayed himself as a keen supporter of the primary digital asset and has gone as far as to describe it as universal money. In April 2022, Bitcoin served as an official payment method in the country, making CAR the world’s second after El Salvador was the first country to embrace cryptocurrency as a legal tender. Referred to as one of the poorest countries, the Central African Republic (CAR) is taking steps to help remedy the country’s economy by taking considerable strides in cryptocurrency. As we congratulate CAR for appointing a committee to initiate crypto regulations, we promise to keep you informed about any developments concerning this project. Please note that this article is for educational purposes and should not be used as legal advice.

Photo by: Traxer on Unsplash

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