BANGUI – The Central African Republic will launch the continent’s first legal cryptocurrency investment hub, the presidency says, extending the country’s embrace of digital finance despite warnings from the International Monetary Fund.
Due to decades of conflict, the Central African Republic last month became the first country in Africa and the second in the world to accept Bitcoin as its official currency.
The government has so far provided little detail on the logistics of its Bitcoin approach.
The soon-to-be-launched “SANGO” crypto venture has a website where interested investors can sign up for a waiting list.
In a statement issued on Monday, President Faustin-Archangel Toadera said the formal economy was no longer an option.
“An impenetrable bureaucracy is holding us back to a system that does not allow us to be competitive.”
There was no indication of when the investment hub would open or how it would work.
The move to adopt Bitcoin in a country where Internet usage is low and electricity is unreliable has raised eyebrows among crypto experts, confused lawmakers and residents of gold and diamond producing countries and raised warnings from the International Monetary Fund.
Central Africa’s regional banking regulator has also sent a reminder to the six-nation economic and financial community in Central Africa about the ban on cryptocurrencies, aimed at ensuring financial stability.
The value of many crypto assets has plummeted in recent months, with Bitcoin falling 39% in eight weeks and losing more than half of its value since the November 10 high of $ 69,000. (Judicial Young’s Report by Sophia Christensen, edited by Mark Potter)