The world looks at African nations as some of the leading hot beds for cryptocurrency support today.
Among its latest developments comes from the Central African Republic (CAR) which has accepted Bitcoin as a reference currency for international trades.
This is still far from what the Republic of El Salvador did in 2021 which is to accept Bitcoin as legal tender but it’s still a huge step forward for the crypto industry. The government of CAR is implementing other regulations alongside it, making their international transactions a lot more stable than ever.
What is a reference currency?
Being counted as a reference currency is not the same as being considered a legal tender. The main difference is that a legal tender is acceptable as payment for everything in a country. While it is not usable for basic payments like a cup of coffee or groceries, Bitcoin is made a more acceptable reference for international transactions. This won’t affect how crypto is used in Bitcasino Bitcoin betting thus far but will have an impact on.
A reference currency, on the other hand, is simply a means to better ensure a fair trade with business partners using different currencies. This helps the CAR institutions to better oversee international transactions as it helps them compare prices with limited impact from inflation.
Is this considered adoption of cryptocurrency?
The CAR clarified on 2 May 2022 that this is an official legal adoption of Bitcoin. However, they have clarified that they won’t be following El Salvador’s decision which accepts the digital asset as a primary payment.
CAR’s goal at the moment is to officially invest in Bitcoin to use as a reference for any currency-hedging transaction to minimise exchange rate fluctuations. You can still use this asset in betting safely as the country also introduces new regulations for users and traders.
What does this mean for the crypto industry?
CAR’s adoption of Bitcoin as a primary investment gives the asset and other crypto more recognition around the world. Other countries are more likely to also accept digital assets as reference currencies as they become more stable. All they need to do is focus on more regulations to protect investors and traders.
However, there will be challenges that CAR has to face with this adoption. The most important of which is how the country has limited access to high-speed internet. A majority of connected individuals rely on mobile broadband. Another challenge is educating the public about Bitcoin as a majority of the population is not familiar with crypto. Given the government’s focus on Bitcoin adoption, it’s likely that these will be addressed within the year.
Bitcoin has gained another supporter from the CAR and it is one step closer to global adoption. Crypto trading, bank transfers, and payment are still limited practices that need more regulations and African nations are among the first to take such steps. All Bitcoin investors are looking forward to more news on adoption to make the asset as stable as it can be. Development in this field greatly helps all users of the asset, investors, traders, holders, and Bitcasino Bitcoin players alike.