Bitcoin Adoption in the Central African Republic: The Real Work Must Start Now

The surprise decision of the Central African Republic (CAR) to adopt Bitcoin shows once again that the best cryptocurrency can be an alternative to fiat. However, African countries still have to invest heavily in telecommunications infrastructure. CAR should also prioritize training to help the population become familiar with cryptocurrency basics.

Expensive Internet in CAR

The Central African Republic’s decision to designate Bitcoin is beyond question.BTC) surprised many with a court bid. Few people expected that CAR, one of the poorest countries in Africa, whose economy has been devastated by civil war, would be the first to adopt Bitcoin.

The move by CAR is disconcerting for critics still trying to understand why other countries have joined El Salvador to legalize Bitcoin. First of all, I cannot understand how a country with less than 12% internet penetration has chosen the best cryptocurrency as its trading currency.

The reported lack of infrastructure in the Central African Republic and the fact that mobile connections are only available to 30% of the population seems to make it less convincing for Bitcoin adoption. Also according to 2018 ICT Profile CAR’s then “institutional uncertainty” is known to limit investment in broadband networks and access to cross-border submarine cables.

According to the ICT profile, as a result of this and many other factors, the Central African Republic has had to rely on expensive satellite connections for most of its international Internet bandwidth, which translates into high Internet prices. The expensive internet is one of the many barriers to adoption efforts.

Despite these seemingly insurmountable challenges, Bitcoin proponents and alternative financial system proponents are adamant that the Central African Republic decision proves the role digital money can play. This is especially true for countries that are cut off from the global financial system.

Personal money can still be a legitimate bid.

To the followers of the eminent Austrian economist Friedrich Hayek proponents of personal fundsBitcoin adoption by El Salvador and now the Central African Republic proves he was right. There is actually a place for personal money.

Despite strong opposition from institutions such as the International Monetary Fund (IMF), some believe that more countries will still make Bitcoin a fiat. In fact, reports of around 44 countries participating in El Salvador’s recent Bitcoin show suggest that more countries may follow in the footsteps of these two countries.

While it is logical to assume that CAR plans to invest heavily in the development of its telecommunications infrastructure, there is no guarantee that an increase in the total amount of funds allocated to it will change its attitude towards Bitcoin.

Therefore, CARs must raise funds for efforts aimed at increasing public understanding of Bitcoin and how to buy Bitcoin for the first time. Indeed, education is still the key to eradicating ignorance in many developing countries as well as in the Central African Republic.

basic learning

The majority of CAR’s 5 million+ residents need to be familiar with the basics, such as a Bitcoin wallet, recovery phrase, or public address for the wallet. Achieving this greatly increases the likelihood that CAR will become a country where Bitcoin functions as both a fiat currency and a currency of exchange.

In addition to educating the population, CARs must work with players in the crypto space, such as cryptocurrency exchanges, payment processors, and wallet providers. Just as El Salvador, which has been seeking the services of cryptocurrency exchanges since then, was the first to adopt Bitcoin, African countries should partner with reputable players in the industry.

If the Central African Republic decides to follow the recommendations made in this article, it could achieve its goal of making Bitcoin the country’s base currency much faster. The same goes for other countries that want to make Bitcoin an alternative legal tender.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terrence Jimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and author. He has written extensively on the economic problems of some African countries and how digital currencies can provide Africans with an escape route.

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