“Assuming a well-prepared move towards digitalization and through the use of central bank digital currencies, the cryptocurrencies can contribute to a more robust payments system“on the continent, IMF Africa Department Director Abebe Aemro Selassie told a news conference.just embracing the ability to use bitcoin is something that needs to be watched very, very carefully, to ensure that the legislative framework, financial transparency and governance are in place,” continued the leader.
The Central African Republic announced on Wednesday that it has adopted bitcoin as its official currency alongside the CFA franc and legalized the use of cryptocurrencies, claiming to be the first country to do so in Africa. On September 7, 2021, El Salvador had been the first country in the world to adopt bitcoin as legal tender and the IMF had immediately denounced a dangerous decision for financial stability, financial integrity and consumer protection.
The volatility of bitcoin can make you dizzy. In 2021, prices had soared by more than 150% and reached a historic high of 68,991 dollars, before collapsing by more than 30%. Even if the market calmed down in 2022, the variations remain very strong: -17% in February, +8% in March and +10% in April.
For the time being, only El Salvador and the Central African Republic have adopted bitcoin as legal tender, but other countries are considering doing so, some having initiated legislative processes in this direction, according to the specialized site Coinmarketcap.com.