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The Central African Republic legalized the use of cryptocurrencies

The Central African Republic legalized the use of cryptocurrencies

News circulated to the world that the Central African Republic (CAR) has followed El Salvador’s lead and adopted Bitcoin as legal tender in the country. The truth is, however, that this news is not entirely accurate.

The Central African Republic, which has a population of over 4 million and an area of up to 623,000 km, may not have adopted Bitcoin as legal currency, but it has passed a law to regulate cryptocurrencies, thereby legalizing the use of cryptocurrencies in financial markets.

The bill to regulate the use of cryptocurrencies was introduced last week by Justin Gourna Zacko, minister of the digital economy, post, and telecommunications, and was unanimously approved by lawmakers in parliament despite opposition protests.

Minister Zacko also expressed his belief that investing in cryptocurrencies could benefit millions of users, but that their treacherous volatility must be kept in mind.

The new law should aim to create an enabling environment for the inclusive growth of the crypto sector in the region, allow merchants and businesses to make crypto payments, and also provide the ability to pay taxes through cryptocurrencies.

The law also includes measures for offenders who commit illegal activities and fraud in the crypto environment. Such criminals then face up to 20 years behind bars and a fine of between 100,000,000 and 1,000,000,000 francs.

Thus, the law aimed at regulating cryptocurrencies does not adopt Bitcoin as legal tender, as some news outlets, including Forbes magazine, have reported, to which Changpeng Zhao, founder, and CEO of crypto exchange Binance, also reacted with excitement.

El Salvador remains the only country where Bitcoin is an official currency

El Salvador became the first country in the world to introduce the cryptocurrency Bitcoin as its official currency. This can have its positive and negative sides, or risks, which El Salvador is willing to accept. 

Residents of El Salvador will thus be able to pay with Bitcoin, which may mean much easier transactions for many, especially when it comes to making payments abroad. Up to 70 percent of El Salvador’s population does not have a bank account, and people often receive money from relatives living and working abroad. It is reported that 23% of the gross domestic product came into the country in money earned by some 2.5 million people working abroad, which amounts to some USD 6 billion.

For other countries, El Salvador will certainly play the role of a guinea pig to see what can happen after the adoption of cryptocurrency and how the population will react to it. It will certainly depend to a large extent on where the value of Bitcoin goes and how stable this currency will be.

Where to Pay with Bitcoin Now

Purchasing items with Bitcoin is a relatively simple process. Unlike other forms of payment, it does not require an account or a bank account, and its use has become increasingly popular. It is accepted by various retailers and online merchants. You can purchase everything from groceries to travel and even kitchenware. You can visit the bitcoin casino and wager there. You can also donate to nonprofit organizations with Bitcoin. Many large companies have also begun accepting payments in bitcoin.

Another way to spend your bitcoins is to buy gift cards. There are many gift cards designed to let you spend your bitcoins anywhere that don’t accept digital currency. To purchase a gift card with bitcoin, you simply send the money to the company’s bitcoin address. Some gift cards also let you convert gift cards into bitcoin for future use, although these conversions can come with fees.

Many people use Bitcoin, and by extension other cryptocurrencies, as financial instruments. Some see this virtual currency as a great investment that will also yield high returns due to its high volatility. Many people, on the other hand, see Bitcoin as a great way to save money.

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