The Central African Republic’s adoption of Bitcoin as legal tender presents a series of challenges for the country and the region, the International Monetary Fund (IMF) as reported by Bloomberg.
Last week, the government announced that the nation would become the second to adopt the cryptocurrency after El Salvador. The decision drew criticism from opposition parties and was made without consulting the regional central bank, which manages a common currency used by six countries including the Central African Republic.
“The adoption of Bitcoin as legal tender in C.A.R. raises major legal, transparency, and economic policy challenges. IMF staff are assisting the regional and Central African Republic’s authorities in addressing the concerns posed by the new law.” the IMF said in an emailed response to questions.
The government said that adopting Bitcoin as a legal tender will spur CAR’s economic recovery and growth, while also helping stabilize the country, which has been wracked by a decade-long civil war.
The $2.3 billion economies, which the African Development Bank forecasts will expand 5.1% this year, ranks 188 out of 189 in the United Nations Development Programme’s Human Development Index.
Read also; The Central African Republic Adopts Bitcoin as a form of Payment.