The tweet came after the Central African Republic (CAR) approved Bitcoin as legal tender and became the second country to do so.
There are now two countries where #bitcoin is legal tender. This is HUGE!!!!!
— Lark Davis (@TheCryptoLark) April 30, 2022
Reasons for making Bitcoin legal tender
Over the course of many years, political unrest and bloodshed have plagued this landlocked African country, the CAR.
Some believe that CAR’s Bitcoin risk is an attempt to avoid Russian sanctions and maintain oil commerce with the country’s largest trading partner.
El Salvador enabled consumers to use Bitcoin in all transactions starting in September 2021 in an effort to alleviate one of the country’s most chronic economic issues: the difficulty of its residents living abroad transferring money back to El Salvador.
According to statistics, this corresponds to a fifth of the country’s GDP, yet these transfers suffer hefty processing costs. In addition, the nation has a low level of banking penetration.