Bitcoin, adopted as the official currency in the Central African Republic, is not a “panacea”, warns the IMF

Thursday, April 28, the day after the adoption by the Central African Republic of bitcoin as its official currency, the International Monetary Fund (IMF) called for not seeing cryptocurrency “as a panacea against economic challenges” facing Africa.

“Assuming a well-prepared move towards digitalization and through the use of central bank digital currencies”cryptocurrencies “can contribute to a more robust payment system” on the continent, indicated the director of the IMF’s African department, Abebe Aemro Selassie, during a press conference. Gold “Simply embracing the ability to use bitcoin is something that needs to be watched very, very carefullyhe continued. We must ensure that the legislative framework, financial transparency and governance are in place. »

Very strong variations

The Central African Republic, the second least developed country in the world according to the UN, announced on Wednesday that it had adopted bitcoin as its official currency alongside the CFA franc and legalized the use of cryptocurrencies, claiming to be the first country to do so in Africa. On September 7, 2021, El Salvador was the first country in the world to adopt bitcoin as legal tender and the IMF immediately denounced a dangerous decision for the economy. “financial stability, financial integrity and consumer protection”.

The volatility of bitcoin can make you dizzy. In 2021, prices had soared by more than 150% and reached a historic high of $68,991, before collapsing by more than 30%. Even if the market calmed down in 2022, the variations remain very strong: – 17% in February, + 8% in March and + 10% in April. For the time being, only El Salvador and the Central African Republic have adopted bitcoin as legal tender, but other countries are considering doing so, some having initiated legislative processes in this direction, according to the specialized site Coinmarketcap.com.