• The IMF has given a positive outlook on the Central African Republic’s (CAR) economic prospects, one year after it adopted Bitcoin as legal tender.
• The IMF report projects a 2.2% GDP growth and manageable debt, but warns of liquidity risks.
• The CAR government is laying the groundwork for digital currency integration and actively working on legal amendments to enable the smooth integration of cryptocurrency through the Sango Project.
IMF Optimism in Central African Republic
The International Monetary Fund (IMF) recently expressed optimism regarding the Central African Republic’s (CAR) economic prospects one year since it adopted Bitcoin (BTC). The organization published a report projecting a 2.2% Gross Domestic Product (GDP) growth and manageable debt, while also warning of liquidity risks.
Bitcoin Adoption
In June 2022, CAR made history by becoming the second nation to adopt Bitcoin as legal tender, after El Salvador. Despite being one of the poorest countries in the world, CAR is leveraging cryptocurrency to reshape its financial infrastructure and boost its economy’s potential. Following approval of Bitcoin as legal tender in CAR, the government quickly began working on integrating digital currencies into their national framework with an initiative called Sango Project.
Delay in Listing Sango Coin
In December 2022, CAR announced delays in listing Sango Coin on crypto exchanges due to prevailing market conditions and marketing considerations; then again in March 2023 citing legal and regulatory obstacles; and finally in January 2023 due to further delays “just for a few weeks” based on legal amendments needed to smooth cryptocurrency integration via the Sango Project.
Sustainable Debt
The IMF report indicated public debt would remain sustainable despite having significant liquidity risks from shortfalls in donor support as well as challenges accessing domestic/regional markets .
Conclusion
The CAR is embracing cryptocurrency to improve its financial infrastructure and bolster economic prospects despite being one of the world’s poorest nations . Despite some delays due to various factors , the country remains dedicated towards achieving success with this initiative .