Connect with us

International

Bitcoin Not A Solution To Africa’s Economic Problems, Says IMF

Published

on

IMF
  • The Central African Republic has become the second country in the world to adopt bitcoin as official currency after El Salvador, which did so last year

  • 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

EDITOR’S PICK

EKO HOT BLOG reports that Bitcoin is not a cure-all for Africa’s economic woes, the International Monetary Fund warned Thursday, 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 “robust” payment system with financial transparency and a governance framework must be in place when adopting cryptocurrencies.

“It is really important to not see such things as a panacea” for the challenges that countries face, he said.

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

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.

FURTHER READING

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 “large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection”.

Click to watch our video of the week




Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611




 

 


DISCLAIMER: Opinion articles are solely the responsibility of the author and does not necessarily reflect the views of the publishers Of  EKO HOT BLOG

For publication of your News Contents, articles, Videos or any other News Worthy Materials, please send to [email protected]

For Advert and other info, you can call 08035617233 or send a WhatsApp Message to 08035617233.

Please drop your comments

Copyright © Ekohotblog

MGID