Central African Republic accepts Bitcoin as legal tender

The Bitcoin fever is spreading. After El Salvador, Lugano and Honduras Prospera, a special economic zone in the Latin American country, the Central African Republic has also passed a law to accept Bitcoin as legal tender, as reported by Forbes.

As per the report, the National Assembly unanimously passed the bill which would make the cryptocurrency legal tender in the country.

Calixte Nganongo, minister of finance and budget, and Gourna Zacko, minister of digital economy, postal services, and telecommunications, initiated and introduced the legislation establishing the legal framework for cryptocurrency regulation in the Central African Republic, as well as Bitcoin as an official currency.

The law was unanimously supported by the National Assembly to assist the country's economic recovery and peacebuilding efforts. Bitcoin was accepted as legal tender last in September by El Salvador. Nayib Bukele, the President of El Salvador has always been bullish about the prospects of cryptocurrencies and actively speaks about them.

Moreover, the city of Lugano in Switzerland also accepted Bitcoin along with stablecoin USDT Tether and LVGA as de facto legal tender in the city last month.

Apart from that, even Honduras Prospera, a special economic zone in the Latin American country Honduras announced this month that they would be accepting Bitcoin as legal tender in the country to propel economic growth.

Despite this, experts still believe Bitcoin and other cryptocurrencies are too volatile to function as legal tender in modern economies. It is still interesting to note that institutional investors like Morgan Stanely, Goldman Sachs, etc have recently shown interest in Bitcoin and other cryptocurrencies propelling widespread adoption.

Also, recently retail giants like Walmart, Shopify, Whole Foods, McDonald's, Starbucks too have started accepting Bitcoin as a viable payment option via the Lightning Network.

Despite volatility, Bitcoin as it seems will have a significant role in shaping the future of money.