The International Monetary Fund, IMF has cautioned the Central African Republic over the country’s adoption of Bitcoin as legal tender
This follows the announcement last week of the country’s decision to adopt cryptocurrency as a legal tender thereby becoming the second country after El Salvador to do so.
According to the IMF, “Bitcoin’s acceptance as legal tender in C.A.R. raises significant legal, economic policy, and transparency issues.” the Fund said in an emailed response to a question sent to it.
The Central African Republic’s government said the adoption of Bitcoin will stimulate the country’s economic recovery and growth as well as aid the stabilization of the country, after several years of civil war.
However, the opposition parties have kicked against the government’s decision, which was made without consulting the regional central bank that manages the shared currency, CFA franc, of former French colonies in Africa including the Central African Republic.
The Central African Republic ranks among the poorest nations in the world.