IMF warns of potential problems from bitcoin legalization in the Central African Republic

The International Monetary Fund (IMF) says that adopting Bitcoin as legal tender in the Central African Republic (CAR) could pose problems for the country and the region. Bloomberg reports.

The IMF said that with the legalization of the first cryptocurrency in CAR there would be problems “in the areas of law, economic policy and transparency.” The Fund is aiding the authorities in addressing them.

Earlier, the CAR approved bitcoin as a means of payment on a par with the local franc. The law was passed by parliament and signed into law by President Faustin-Archange Touadéra.

Previously, in September 2021, Bitcoin was legalized in El Salvador. The IMF has repeatedly criticised this decision and urged turn away from it.

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