Crypto

CAR President Unfazed by Crypto Market Crash

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The President of the Central African Republic (CAR), Faustin-Archange Touadéra, in a cheephe suggested that he is undeterred by the crypto market downturn.

The tweet is a reaction to the ongoing crypto winter, which has seen the total market valuation fall below $1 trillion. The president has been a longtime supporter and continued support for him seems strong despite the economic downturn.

CAR bitcoin adoption

On April 27, 2021, the Central African country announced the adoption of bitcoin as legal tender. The move made it the first African country and the second in the world, after El Salvador, to legalize the use of Bitcoin.

In a released statement, the president’s office referred to the adoption as:

“a decisive step towards opening up new opportunities”.

Unsurprisingly, the economic merits of adoption generated much criticism and concern; most concerns centered on whether Bitcoin is likely to solve the country’s financial problems.

However, it is not publicly known if the country acquired bitcoins and took the same route as El Salvador. This could have a considerable impact as the country is one of the poorest in the world.

In contrast, since September 2021, El Salvador has invested more than $104 million in bitcoin for its treasury. However, the value of the country’s holding has been cut in half due to extreme market conditions.

Meanwhile, adoption in CAR, like in El Salvador, has been slow. Nevertheless, the presidents of both countries continue to push forward with missionary zeal.

A catalyst for technology adoption

Despite its adoption, the war-torn country still lacks the technological infrastructure to support bitcoin adoption. Therefore, it has latched onto its crypto adoption as a likely catalyst for accelerated development.

in a cheep in May 2022, the president announced plans for a project, “Sango”, of which he said: “has the potential to remodel CARs financial system.” Sango, after its completion, is expected to serve as a “Legal Crypto Hub” for cryptocurrency businesses and enthusiasts, the president said..

However, the project’s website offers little information on how it would work, leaving many unanswered questions.

CAR recently signed an agreement with neighboring Cameroon to share its fiber optic network in 2023. In addition, it plans to install fiber optic networks by the end of 2023 to improve technological access.

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