World Bank Raises Concerns as the Central African Republic Decides to Adopt Bitcoin

Since El Salvador became the first country in the world to adopt Bitcoin as a legal tender last year, many developing nations have considered the option. Eventually, two more countries, Panama and CAR, decided to elevate Bitcoin as a legal tender under their jurisdiction. When El Salvador adopted Bitcoin, international organizations such as IMF issued grave concerns.

Keeping up with the tradition, World Bank has recently targeted CAR with heavy criticisms on the matter. CAR President Faustin Archange Touadera posted a tweet last week sharing the updates about the latest cryptocurrency promotion plan called SANGO. Touadera claimed that for CAR, keeping up with the formal economic systems is not an option anymore.

Speaking on the matter of cryptocurrencies, the president of CAR recently claimed in his tweets that the existing bureaucracy is rigged and does not have any room for guarding the interests of the masses. He further explained that the rigged upper crust diminished all opportunities for the country to allow them to compete in the international markets.

By way of introducing SANGO, Touadera is planning to transform the country into a haven for cryptocurrency organizations and startups. The initiative has been able to gather support from the national assembly of CAR and is currently working on developing an implementable cryptocurrency regulatory framework before 2022. Meanwhile, World Bank has made it clear it does not support the SANGO initiative.

World Bank is not happy with CAR’s Government

World Bank is set to issue a $35 million grant for CAR in lieu of development and technological infrastructure growth. On the other hand, the official memo claims that World Bank is not supporting the initiative of the government on its Bitcoin adoption or SANGO program. To this end, the officials from World Bank have also raised questions on the matter.

Among other reservations, World Bank criticized the CAR government for undermining the inclusion of centralized financial regulators on its cryptocurrency drive. The officials from WB also claim that there are concerns about the transparency of the process. Meanwhile, IMF has also issued its apprehensions about CAR’s Bitcoin adoption policies and growth plans.

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