The Central African Republic is Poised to Become Africa’s Fintech Leader with Cryptocurrency

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– Africa has made strides in catching up with the rest of the world in the tech sector, most notably in fintech.

– African startups attracted $5.2 billion in funding in 2021, more than triple the amount received in 2020.

– Of that sum, $3.3 billionor 63 percent of total investmentswent to fintech startups.

– Nigeria, Kenya, South Africa, and Seychelles received 96 percent of 2021’s funds for African blockchain startups.

– The Central African Republic (CAR) recently voted to adopt Bitcoin as a legal tender, becoming the second country globally to do so after El Salvador.

– Many are left wondering what CAR aims to achieve with this move, especially as the bear market begins.

– CAR’s designation of Bitcoin as a legal tender might be good for the industry at large by possibly encouraging other countries to follow suit, and therefore further legitimizing the industry.

– Crypto and blockchain-based applications can provide economic benefits to underprivileged communities.

– In order to create economic advantages, CAR needs to come up with a plan to build the infrastructure needed to support a crypto economy.

– This should entail expanding Internet connectivity and investing in and developing a real high-tech sector to attract foreign investments.

– Special economic zones, or ecozones, can provide an effective blueprint on how developing nations can generate economic growth.

– By leveraging the business-friendly incentives that ecozones typically provide, CAR could create a launchpad for the nation’s crypto and broader fintech community to mature and scale.

– Declaring Bitcoin a legal tender must come with the necessary economic infrastructure to support the move.

 

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