Bitcoin Not A Remedy For Africa’s Economic calamity, Said-IMF

The International Monetary Fund warned on Thursday April 28, 2022 that Bitcoin is not a cure for all Africa's imbalance, after the Central African Republic adopted the cryptocurrency as legal tender.

The head of the IMF’s African department, Abebe Aemro Selassie, said that a “huge” payment system with financial viewable and a governance framework must be in place when adopting cryptocurrencies, he added that “It is really important to not see such things as an antidote” for the challenges that countries face.

It is said that Central African Republic has become the second country in the world to adopt bitcoin as official currency after El Salvador, which did it so last year.

Also the CAR is one of the planet’s poorest and most troubled nations, locked in a nine-year-old civil conflict and with an economy heavily dependent on mineral extraction, much of which is informal, It is among six central African countries that share the CFA franc (a regional currency that is backed by France and pegged to the euro).

The office of CAR President Faustin Archange Touadera said Wednesday that lawmakers passed bitcoin legislation and that he had signed it into law.

And the Touadera’s chief of staff, Obed Namsio, said Wednesday that the move “places the Central African Republic on the map of the world’s boldest and most visionary countries.”

The IMF had heavily criticised El Salvador’s adoption of the cryptocurrency last year, warning of “high risks in connection with the use of bitcoin on financial stability, financial integrity, and consumer guidance”. While other countries have already initiated legislative processes to adopt bitcoin, according to the specialised site "Coinmarketcap.com''.

Currently Bitcoin’s value has swung wildly, soaring by 150 percent last year to reach a record $68,991 before falling sharply in recent months. It was worth almost $40,000 on Thursday April 28, 2022.