Central African Republic IMF Optimism Despite Bitcoin Adoption

The Central African Republic (CAR) has received optimism from the International Monetary Fund (IMF) a year after Bitcoin’s (BTC) approval. The IMF’s positive outlook reflects the country’s economic outlook and the impact of cryptocurrency adoption.

The International Monetary Fund (IMF) has released a report that paints a more positive picture of the country’s economic outlook in 2023. The report indicates an expected rebound in real GDP growth to 2.2%, attributed to factors such as the base effect and policy adjustments leading to improved fuel delivery. The IMF also expects an average inflation rate of 6.3% for the year 2023.

According to the IMF document, the CAR’s projected government debt is expected to remain sustainable. However, the report highlights the presence of significant liquidity risks, as evidenced by relevant debt indicators. These risks stem from possible shortfalls in donor support and difficulties in entering domestic and regional markets.

The CAR made history by becoming the second country in the world after El Salvador to adopt Bitcoin as legal tender. Despite being one of the poorest countries in the world, CAR is leveraging Bitcoin’s potential to reshape its financial infrastructure and improve its economic outlook.

After adopting Bitcoin as legal tender in CAR, the government wasted no time in laying the groundwork for digital currency integration. CAR President, Faustin-Archange Touadera, revealed the imminent launch of a major crypto initiative dubbed “Sango” marking the country’s entry into the world of cryptocurrencies.

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In December 2022, the CAR made an announcement regarding the postponement of the listing of its cryptocurrency, Sango Coin, on crypto exchanges. The decision was attributed to prevailing market conditions and marketing considerations.

The Sango Project, which oversees the national token, Sango Coin, built on the Bitcoin network, revealed in January 2023, that a government task force is actively working on legislative changes to allow smooth integration of the cryptocurrency.

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