According to reports, the new cryptocurrency policy would enable residents to pay their bills in cryptocurrency and businesses to accept cryptocurrency as payment.
The Central African Republic (CAR) has become the center of an intense commotion in the cryptocurrency industry, with several stories claiming that it, like El Salvador, is adopting Bitcoin (BTC). Contrary to popular opinion, the African country has not recognized Bitcoin as legal cash; rather, it has approved the usage of bitcoins in capital markets.
The bitcoin bill was proposed on April 21 by Justin Gourna Zacko, Minister of Digital Economy, Post, and Telecoms, and was overwhelmingly passed by MPs in the legislature despite objections protests, according to RFI.
The cryptocurrency law intends to create a conducive climate for the region’s inclusive expansion of the crypto industry. Minister Zacko also emphasized the growing problems in transporting money from the African country, and he believed that the introduction of cryptocurrency will aid in fixing this problem.
According to reports, the new bill would require merchants and enterprises to make cryptocurrency payments, as well as allow for income taxes in cryptocurrency through recognized institutions.
The new bitcoin law also includes measures for individuals who break the rules. As to one article, violators might face up to 20 years in prison and fines ranging from 100,000,000 to 1,000,000,000 Financial Union of Africa (CFA) francs.
Gloire, the creator of Kiveclair, a Cryptocurrency Beach-inspired refugee initiative in the Congo, detailed the new rule to Cointelegraph, saying:
“The major consequence for citizens is that they can now use currencies other than the FCFA (the local currency) while still being given protection and transfer funds at a lesser cost.” Above everything, they can conduct monetary operations even without the involvement of banks (while remaining legally protected).”
The CFA franc, which is linked to the euro and is produced in France, is used by 14 countries, and its monetary policy is controlled by Western powers. While the formal peg was fixed at one euro to 655.96 CFA francs, the fiat has been losing value for a specific time. As a result, Cryptocurrencies are getting popular in nations grappling with a global financial downturn.
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