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Central African Republic (CAR) Became The Second Country To Adopt Bitcoin

Central African Republic (CAR) Became The Second Country To Adopt Bitcoin:

The Central African Republic (CAR) became the second country after El Salvador to adopt Bitcoin as legal tender.

  • The Union Budget 2022-2023 of India has also proposed to introduce a digital currency in the coming financial year.
  • It was also announced that “any income from transfer of any virtual digital asset shall be taxed at the rate of 30%.”
  • The measure would enable “strong and inclusive growth” and place the African country on the “map of the most courageous and visionary countries in the world”.
  • Having a population of 5 million, CAR is among the poorest and most economically fragile countries globally.
  • As per the World Bank estimates provided in July 2021, 71% of its population was living below the international poverty line of USD 1.90/day.
  • There is potentially a direct relationship between inflation and countries permitting the use of cryptocurrencies.
  • Cryptocurrencies bear the potential to convert inflation-related decline from legal currencies into positive growth.
  • This potentially direct relationship would be relevant for CRA. As per the IMF, inflation in the country is expected to accelerate to 4% in 2022 because of rising food and fuel prices.

Cryptocurrency:

  • Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions.
  • Cryptocurrencies don’t have a central issuing or regulating authority, instead use a decentralized system to record transactions and issue new units.
  • It is supported by a decentralized peer-to-peer network called the blockchain.

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