In April 2022, the Central African Republic became the first African country to adopt Bitcoin as a legal tender. The nation’s parliament recognised Bitcoin and other forms of cryptocurrency as national tender. This becoming the second country in the world to officially legalise crypto as legal tender.
In September 2021, El Salvador became the first country in the world to legalise cryptocurrency as a form of payment, allowing consumers to use crypto in all transactions. Since BTC founded in 2009, ushering in a wave of different other cryptocurrencies.
However, experts believe that nations have to be cautious regarding the adoption of BTC and other forms of crypto as legal tender. BTC wasn’t designed to become a legal tender.
According to them, Nigeria might someday consider BTC as a form of payment, but it would never replace the Naira. They added that using it as Naira would contravene the constitutional purview of the CBN.
They further stated that the nations that had accepted or thinking of accepting crypto as a form of payment. They were those on the brink of economic collapse and Nigeria wasn’t necessarily one.
The Founder and Coordinator, Blockchain Nigeria User Group, Chimezie Chuta, said, “This will be contrary to the constitutional provision of Nigeria’s laws. Because explicitly, the CBN institution empowered to issue a legal tender for the country.
The President of Stakeholders in Blockchain Technology Association of Nigeria and General Secretary of Blockchain Industry Coordinating Committee of Nigeria. Senator Ihenyen, got shock when CAR announced the adoption of BTC as a legal tender. In another report, the IMF added that crypto currencies’ high volatility and valuation and increasing co-movement with equity markets. This would soon pose risks to financial stability in countries with widespread crypto adoption.
-Punch