In April 2022, an untapped market in the heart of Africa made headlines with its daring quest to embrace the possibilities offered by crypto. The Central African Republic (CAR), a French-speaking landlocked country, envisioned decentralized finance as a way to economically liberate its people(s).
The presidency, led by Faustin-Archange Touadéra, announced the country’s adoption of Bitcoin as a legal tender—in addition to its standing fiat, the CFA Franc.
The country became the second in the world—after El Salvador—to embark on the rather audacious endeavor, with lofty ambitions to become Africa’s crypto vanguard.
“There were indeed potential benefits such as jurisdictional attractiveness for crypto investors for foreign direct investments and the possibility of reaching more unbanked Central African citizens,” says Ashlin Perumall, a Partner in Baker McKenzie's Corporate and M&A Practice Group in Johannesburg, South Africa.
Ashlin is an advisor to...