Central African Republic will be able to use Bitcoin as additional currency, along with their existing one franc. President of the Republic signed the bill, which established the regulatory framework for the use of cryptocurrency, with Bitcoin being accepted as legal tender. The reason why they decided to do so, according to the president’s chief of staff Obed Namsio, is to show the world they are the boldest and the most visionary country in the world.

Previous reports on the CAR legalizing cryptocurrency use in the country's financial markets did not mention BTC as legal tender. The crypto bill, which was introduced by the country's Minister of Digital Economy, Post and Telecommunications Justin Gourna Zacko, was apparently unanimously passed by lawmakers. The report's ramifications would put the CAR on a small list of countries considering adopting Bitcoin as legal cash. El Salvador's Bitcoin Law took effect in September 2021, making the cryptocurrency a legal tender alongside the US dollar. The Latin American country is also planning to build Bitcoin City, which will be financed with $1 billion in Bitcoin bonds.

Movement of Bitcoin in the last five years. Price is in CAR franc. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/btcxaf:cur

https://www.france24.com/en/africa/20220427-central-african-republic-adopts-bitcoin-as-legal-currency

https://www.reuters.com/world/africa/central-african-republic-adopts-bitcoin-an-official-currency-2022-04-27/

https://cointelegraph.com/news/central-african-republic-will-adopt-bitcoin-as-legal-tender-report

https://www.investing.com/news/cryptocurrency-news/central-african-republic-will-adopt-bitcoin-as-legal-tender-report-2811975