May 25, 2023

IMF Gives Positive Outlook for CAR Economy Despite Embracing Bitcoin

BTC in Central African Republic

BTC in Central African Republic

The International Monetary Fund (IMF) voiced its optimism for the economy of the Central African Republic (CAR), giving it a positive outlook for 2023 after a year of embracing cryptocurrencies, according to Cointelegraph.

According to the IMF report, the Central African Republic’s GDP is expected to make a rebound with a growth of 2.2% because of some factors, including the base effect and policy adjustments leading to enhanced fuel supply. The report also anticipated that the average inflation rate would be 6.3% in 2023.

The IMF report pointed out that the projected public debt of the African country is predicted to be sustainable, but it will face remarkable liquidity risks, as indicated by relevant debt indicators. These risks are a result of potential shortfalls in donor support and challenges in accessing domestic and regional markets.

It is worth mentioning that the Central African Republic is the second country in the world following El Salvador to adopt Bitcoin as a legal tender in a move that aimed to make use of its potential in reshaping the country’s economic infrastructure. The government exerted tremendous efforts to integrate digital currency. President Faustin-Archange Touadera launched an initiative called Sango Project, marking the country’s entry into the world of cryptocurrencies.

Touadera noted that cryptocurrencies have the potential to eliminate the country’s financial barriers, asserting the importance of introducing a legal framework for cryptocurrency usage to create a business-friendly environment, noting: “With access to cryptocurrencies, the monetary barriers existing until now will disappear, the main objective of the measures adopted by the government being the development of the national economy.”

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