The World Bank has expressed concerns about the adoption of Bitcoin as legal tender in the Central African Republic. According to the World Bank, using Bitcoin as an official currency raises questions about transparency and financial effectiveness.
The World Bank has expressed concerns about the use of Bitcoin as legal tender. Last year, the World Bank said that El Salvador’s Bitcoin law posed a danger to the environment and financial transparency. The World Bank has expressed similar concerns about the Central African Republic.
The World Bank expressed concerns about transparency in the Central African Republic government’s failure to consult the country’s central bank before adopting the Bitcoin law. The Bank of Central African States is responsible for monetary policy and manages the Central African franc. The World Bank believes that Bitcoin and other cryptocurrencies are not within its regulatory scope.
Despite these issues, Justine Gourna Zako, the Central African Republic’s Minister of Digital Economy, said cryptocurrencies could be used to circumvent central bank controls on international remittances. In El Salvador, Bitcoin adoption was driven by lower remittance fees. Tonga cited the same reason. The Central African Republic has also launched the Zango platform to build the digital infrastructure needed to adopt a digital yuan.
The country also plans to create a custom digital wallet that integrates Bitcoin’s Lightning Network. The wallet will be similar to El Salvador’s Chivo wallet, supporting instant Bitcoin transfers and automatically converting payments into U.S. dollars upon request.
The World Bank has also said it will not support the initiative, saying a recent $35 million loan would boost the country's existing financial system. However, the president insisted focusing on the "formal economy" was not an option.
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