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The authorities of the Central African Republic not only recognized bitcoin as a legal means of payment, but also announced the creation of a center for the development of the blockchain industry. The crypto hub will appear as part of the Sango project.
However, international financial institutions have expressed concern about the CAR’s plans. The World Bank has announced that the creation of a crypto hub in the Central African Republic is a dangerous precedent.
A representative of the bank told Bloomberg that its institution had previously announced the allocation of a grant to the CAR in the amount of $ 35 million for the digitalization of the financial sector. However, the authorities cannot spend these funds on the implementation of the Sango project.
The World Bank recalls that bitcoin transactions are not controlled by anyone, and the production of cryptocurrencies creates environmental threats.
The head of the Central Bank of the African state, Abbas Mahamat Tolly, also spoke out against the legalization of BTC.
He said that if the mass use of bitcoin begins in the country, a parallel financial system will be formed. Economic stability will be under threat, so the government needs to once again assess all potential risks and refrain from recognizing BTC.
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