According to the BBC, Russia is a close ally of the state, and mercenaries from Russia’s private Wagner (Vagner’s Russian transcript) army are also fighting the country’s rebel groups.
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The use of bitcoin was approved by parliament, which, according to the presidency, “ranks the country among the bravest and visionary states.”
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The currency of the Central African Republic is the franc, as in other former French colonies. According to the BBC, the adoption of bitcoin may be an attempt to weaken the franc in the context of a power struggle between Russia and France.
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French analyst Thierry Vircoulon, quoted by AFP, said “this suspicion is growing in connection with systematic corruption (in the Central African Republic) and with a Russian partner facing international sanctions.”
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The Central African Republic has been the scene of conflicts since 1960, when independence was declared from France. In 2013, controls of a majority Christian country were seized by Muslim insurgent groups, which are being fought by militia units, leading to massacres between members of different religious groups. Bangui began turning to Russia in 2016, when Faustin-Archange Touader took office.
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Salvador and Prospera
Central American Salvador adopted bitcoin as the official currency alongside the US dollar last September – as the first country in the world. The government is enticing people to pay with cryptocurrency, for example, by distributing bitcoin to all users for the first time when setting up Chivo’s official virtual wallet, which is about $ 30 (CZK 670).
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Last week, it also decided to accept Prospera, an autonomously administered Honduran region, as official currency. “A flexible regulatory framework allows us to cryptoinate and use bitcoins for residents, businesses and authorities,” said Prospera.
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The most well-known cryptocurrency in the world can now be used in this area for purchases and payments for services.
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However, the Central Bank of Hondur has warned that it cannot guarantee cryptocurrency transactions. “Any transaction made with this type of virtual asset is the responsibility and risk of the person making it,” the bank said in a statement quoted by Reuters.
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Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently most popular are the so-called bitcoins. They were established in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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