HomeBitcoinThe IMF is opposed to the Central African Republic's adoption of Bitcoin.

The IMF is opposed to the Central African Republic’s adoption of Bitcoin.

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The International Monetary Fund (IMF) has repeatedly expressed concern about various countries’ potential acceptance of Bitcoin (BTC) as legal money.
Despite the fact that the Central African Republic has just recently proclaimed cryptocurrencies an official currency, the organization reiterates its caution.
What is it that she is scared of?

Last week’s big news was that the Central African Republic had made Bitcoin legal tender alongside the CFA franc.
After El Salvador in September 2021, it will be the second country to adopt this way. This is enough to worry the IMF, which had previously issued a warning last year.
The institution believes that the “crypto nation” of particular economies, which is now taking place, is a risk.
For her, this is a problem rather than a solution in already-vulnerable countries.

Rebelote therefore for the Central African Republic. The IMF thus explained to our colleagues at Bloomberg:

“  The adoption of Bitcoin as legal tender in the Central African Republic poses major challenges in terms of transparency, legality and economic policy .  »

As a result, the institution is establishing itself as a resource, she explains, with her staff aiding the Central African Republic’s and the region’s authorities “in order to respond to the issues presented by the new law.”

As a reminder, the Central African Republic shares the usage of the CFA franc with six other Central African States that are members of the Central African Financial Cooperation.
The decision to adopt BTC was made without their input, particularly without the input of the Governor of the Bank of Central African States (BEAC).
These are the two issues that have sparked worry on a regional and global scale.

Other concerns were expressed:
Internet access is extremely limited in the Central African Republic, despite the fact that Bitcoin transactions are required.
Only 557,000 people out of the countries 4.8 million would have access to it.

As a result, we will closely monitor the spread of this new money in the Central African Republic.
Aside from risk considerations, this once again demonstrates one thing: it is the most vulnerable economies that are turning to Bitcoin, unable to find a solution in traditional monetary systems.

 

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