The International Monetary Fund projects 2.2% GDP growth and manageable liability but warns of liquidity threats. 
The Central African Republic (CAR) has received optimism from the International Monetary Fund (IMF) one year since it embraced Bitcoin BTC $26,226. The IMF’s positive outlook reflects the country’s economic perspectives and the impact of embracing the leading cryptocurrency.
The IMF issued a report expressing a moreover positive view of the country’s economic perspectives for 2023. The report indicates a projected rebound in real gross domestic product (GDP) growth to 2.2%, attributed to factors similar to the base effect and policy adjustments leading to improved fuel supply. The IMF similarly anticipates an average inflation rate of 6.3% for 2023.
According to the IMF document, the projected public debt of the CAR is expected to stay sustainable. Still, the report highlights the presence of meaningful liquidity threats, as pointed out by relevant debt indicators. These threats rise from potential shortfalls in donor support and challenges in accessing domestic and regional markets.
The CAR made history by becoming the alternate country in the world, after El Salvador, to embrace Bitcoin as a legal tender. Despite being one of the poorest nations in the world, the CAR is harnessing the potential of Bitcoin to reshape its financial structure and boost its economic perspectives.
Succeeding the approval of Bitcoin as legal tender in CAR, the government dissipated no time in laying the root for digital currency integration. CAR President, Faustin-Archange Touadera, revealed the initiative called Sango Project, marking the country’s entry into the world of cryptocurrencies.
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In December 2022, the CAR published a delay in the listing of coins on crypto exchanges. The decision was attributed to prevailing market conditions and marketing considerations. On March 31, the association behind Coin published further delays “ just for a few weeks, ” citing legal and regulatory obstacles.
In January 2023, the Project uncovered that a government-duty workforce is actively working on legal amendments to enable the smooth integration of the cryptocurrency.
(AMAKA NWAOKOCHA, Cointelegraph, 2023)