In April 2022, the Parliament of the Central African Republic (CAR) adopted the use of Bitcoin as its legal tender, becoming the second country globally to do so after El Salvador. The move was hailed by President Touadéra as a significant opportunity for economic recovery, peace consolidation, and new opportunities for citizens, positioning the country among the most innovative and visionary in the world.
However, this decision is fraught with challenges. In CAR, only 1 in 10 inhabitants have access to the internet, and just 15% have electricity, making the implementation of Bitcoin problematic. The country also lacks resources for mining or purchasing Bitcoin, and its high volatility could exacerbate the country's chronic instability. Moreover, the use of cryptocurrencies might facilitate illegal activities like money laundering, tax evasion, and terrorism financing.
The CAR's decision poses a threat to France's traditional role as a protector and to the EU's influence in the region, as Russia increasingly becomes more involved. Internationally, institutions like the IMF, World Bank, and African Development Bank have criticized the move, delaying aid programs that CAR relies on financially.
The use of Bitcoin could undermine the supervision of CAR's monetary system, especially given France's role in managing the Central African Franc (CFA) and maintaining substantial reserves. This might allow CAR to escape its traditional monetary zone but could also lead to corruption and mismanagement.
Geopolitically, CAR is under constant military conflict since 2013, with a weak financial structure and significant illegal resource exports. The involvement of mercenary groups like Wagner, linked to Russian interests, adds another layer of complexity. These groups operate outside existing peace agreements, often engaging in human rights abuses and are not fully funded through official state budgets.
Furthermore, the recent decline in Bitcoin's value has highlighted the risk of financial losses, especially for countries without the means to invest in such assets. The main question now is how the CAR's adoption of Bitcoin could consolidate the weaknesses of a failing and corrupt state and potentially impact the rest of the region. The true question is whether the introduction of Bitcoin can thrive in CAR or if it will further entrench the country into the "wilderness" of cryptocurrency.
