The Central African Republic (CAR) has recently received positive feedback from the International Monetary Fund (IMF) regarding its adoption of Bitcoin (BTC) as legal tender. The IMF’s optimistic stance reflects the country’s economic prospects and the positive impact of embracing the leading cryptocurrency.
In a newly published report, the IMF expresses a more positive outlook on the CAR’s economic prospects for the year 2023. The report projects a rebound in real gross domestic product (GDP) growth to 2.2%, attributing this growth to factors such as the base effect and policy adjustments that have led to an enhanced fuel supply. The IMF also expects an average inflation rate of 6.3% for the same year.
According to the IMF document, the CAR’s projected public debt is expected to remain sustainable. However, the report also highlights the presence of significant liquidity risks, which are indicated by relevant debt indicators. These risks arise from potential shortfalls in donor support and challenges in accessing domestic and regional markets.
The CAR made history as the second country in the world, following El Salvador, to adopt Bitcoin as legal tender. Despite being one of the world’s poorest nations, the CAR is leveraging the potential of Bitcoin to reshape its financial infrastructure and bolster its economic prospects.
Since the approval of Bitcoin as legal tender, the CAR government has been proactive in laying the groundwork for the integration of digital currency. CAR President Faustin-Archange Touadera unveiled an initiative called the Sango Project, marking the country’s entry into the realm of cryptocurrencies.
In December 2022, the CAR announced a delay in the listing of Sango Coin on crypto exchanges due to prevailing market conditions and marketing considerations. Subsequently, on March 31, the organization behind Sango Coin announced further delays, citing legal and regulatory obstacles that needed to be addressed.
As of January 2023, the Sango Project revealed that a government task force is actively working on legal amendments to facilitate the smooth integration of the cryptocurrency.
