IMF optimism in the Central African Republic, despite Bitcoin adoption

The Central African Republic (CAR) has received optimism from the International Monetary Fund (IMF) one year since adopting Bitcoin (BTC). The IMF’s positive outlook reflects the country’s economic prospects and the impact of embracing leading cryptocurrencies.

IMF published a report that expresses a more positive view of the country’s economic prospects for 2023. The report shows projected increases in real gross domestic product (GDP) growth to 2.2%, which is attributed to factors such as base effects and policy adjustments leading to increase in fuel supply. The IMF also anticipates an average inflation rate of 6.3% for 2023.

According to the IMF document, the CAR public debt projection is expected to remain sustainable. However, the report highlights the presence of significant liquidity risk, as indicated by the relevant debt indicators. This risk arises from a potential shortage of donor support and challenges in accessing domestic and regional markets.

CAR made history by becoming the second country in the world, after El Salvador, to adopt Bitcoin as legal tender. Despite being one of the poorest countries in the world, CAR is leveraging Bitcoin’s potential to reshape its financial infrastructure and improve its economic prospects.

Following the approval of Bitcoin as legal tender in CAR, the government wasted no time laying the groundwork for digital currency integration. CAR President, Faustin-Archange Touadera, revealed the imminent introduction of a significant crypto initiative called “Sango,” marking the country’s entry into the world of cryptocurrencies.

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In December 2022, CAR made an announcement regarding the postponement of listing its cryptocurrency, Sango Coin, on cryptocurrency exchanges. The decision is related to prevailing market conditions and marketing considerations.

The Sango Project, which oversees the national token, Sango Coin, which is built on the Bitcoin Network, revealed as of January 2023, the government task force is actively working on amendments to the law to allow for smooth integration of cryptocurrencies.

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