Almost a year after making Bitcoin (BTC) its official currency, the Central African Republic (RCA) is preparing a new legal framework. Just as El Salvador did, the aim of the law is to provide the country with legal protection for cryptocurrency users and companies.
The new law was announced on Monday (23), according to RCA President Faustin-Archange Touadera. Touadera confirmed, through his Twitter account, the formation of a group that will prepare the future bill.
As the president explained, the group will have 15 representatives who specialize in their fields, as well as the participation of several ministries. The concerned departments so far include the Ministry of Mines and Geology. Ministry of Water, Forestry, Hunting and Fishing; and the Ministry of Agriculture and Rural Development.
towards wide adoption
Apparently, RCA intends to take a different path from El Salvador and “diversify” its project further. While Nayib Bukele Nation is focusing on BTC, RCA seems to want to make room for other cryptocurrencies.
Touadera described the technology as “a unique opportunity for economic and technological development.” In addition, the country also launched its own cryptocurrency (Sango) last year, with which it raised nearly R$6 million.
The Central African Republic submitted a legal tender for BTC in April, becoming the second country in the world to enact such a law. Subsequently, the country also announced the creation of a “crypto island” called Sango, similar to Bitcoin City in El Salvador.
However, the country will not issue debt securities in BTC to fund the business, but has decided to issue its own cryptocurrency. Touadera gave no indications of what the project would look like, but it is likely that the state wants to create incentives for companies to settle there.
striving for regulation
But there could be another reason behind RCA’s decision to regulate cryptocurrencies. Countries around the world are moving ahead with legislation for this sector. In fact, some countries like El Salvador and Brazil have recently passed these laws.
For example, the European Union is set to vote in April on a comprehensive bill with a strong focus on stablecoins, and the regulation of markets in crypto assets (MiCA). This project sets strict and controversial market rules.
The UK is expected to publish a consultation in the coming weeks that could determine the regulation. In the United States, senators like Elizabeth Warren and Roger Marshall recently introduced a bill to combat cryptocurrency money laundering.