The International Monetary Fund (IMF) has made a strong case against the adoption of Bitcoin as legal tender by countries.
Abebe Selassie, Director of IMF’s African Department, made this warning at a media briefing on the organization’s economic outlook for Sub-Saharan Africa.
His remarks came after the Central African Republic became the first country in Africa and second in the world after El Salvador to adopt bitcoin as a legal tender.
Selassie emphasized Bitcoin is not a remedy for the economic troubles in African countries.
Meanwhile, President Faustin Archange Touadera’s Chief of Staff, Obed Namsio, highlighted that the decision “puts the Central African Republic on the map of the world’s boldest and most visionary governments.”
The Central African Republic is a thinly populated country with 5.4 million people, according to the World Bank. Despite its natural resources, it is one of the poorest and most vulnerable countries on the planet.
“It is absolutely crucial not to consider such things as a cure for the economic issues our countries confront,” Selassie said.
He said, “You have to make sure that the legislative framework, in terms of the transparency of financial flows, the governance framework around it is all robustly in place.”