Central African Republic Optimistic With Bitcoin Adoption, IMF Projects Economic Recovery

President of the RAT, Faustin-Archange Touadera. (photo: Twitter @FA_Toudera)

JAKARTA - The Central African Republic (RAT) received optimism from the International Monetary Fund (IMF) a year after adopting Bitcoin (BTC). The IMF's positive views reflect the country's economic prospects and the impact of this leading cryptocurrency adoption.

The IMF published a report expressing a more positive view on the country's economic outlook for 2023. The report shows a projected recovery in the growth of a Gross Domestic Product (GDP) of 2.2%, due to factors such as basic effects and policy adjustments leading to an increase in fuel supply. The IMF also estimates an average inflation rate of 6.3% for 2023.

According to IMF documents, RAT-projected public debt is expected to remain sustainable. However, the report highlights the significant risk of liquidity, as indicated by relevant debt indicators. These risks arise from potential donor support shortages and challenges in accessing domestic and regional markets.

RAT made history by becoming the second country in the world after El Salvador to adopt Bitcoin as a legal tender. Despite being one of the poorest countries in the world, RAT is leveraging Bitcoin's potential to change its financial infrastructure and increase its economic prospects.

After Bitcoin's approval as legal tender at the RAT, the government did not waste time preparing for digital currency integration. RAT president, Faustin-Archange Touadera, revealed an initiative called the Sango Project, which marks the country's entry into the cryptocurrency world.

Cointelegraph reported, In December 2022, the RAT announced a delay in Sango Coin's listing on crypto exchanges. The decision was due to market conditions and marketing considerations. On March 31, the organization behind Sango Coin announced a further delay "only weeks," citing legal and regulatory hurdles.

In January 2023, Project Sango revealed that a team tasked by the government was active in seeking legal changes to enable smooth integration of the cryptocurrency.