The International Monetary Fund (IMF), warning that such a move could lead to financial instability in the country, announced last month that the Central African Republic (CAR), had adopted Bitcoin as a legal tender and allowed the legalization of the use cryptocurrencies.
This criticism was a result of the group’s hawkish views on multiple occasions against El Salvador adopting Bitcoin and President Nayib Bukele’s ambitious plan for Bitcoin-backed bonds.
According to the global authority, there are concerns about legal and macroeconomic uncertainties that were triggered by Bitcoin adoption. The IMF replied to Bloomberg via email.
“The C.A.R. adopted Bitcoin as a legal tender. There are major legal, transparency and economic policy issues that arise from the adoption of Bitcoin as legal tender in C.A.R. The IMF staff is helping the Central African Republic and the region to address the concerns raised by the new law.”
The IMF has not been immune to such criticism. The IMF has not been immune to such criticisms. According to CryptoPotato, the government passed the law without consulting the opposition parties or the regional central bank that manages the currency. The IMF does not recognize the CAR’s currency. This makes international trade with CAR and other African nations extremely difficult and dependent on France. United Nations considers the CAR one of the poorest countries in the world, with just 11% of its inhabitants having internet access.
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