The Central African Republic is now the second country in the world to declare bitcoin as its official currency, following the same move by El Salvador last year.

Why is this important: The more countries that accept bitcoin as legal tender, the more mainstream it will become. Bitcoin could also help individuals in developing countries escape poverty, reports The Guardian.

What they say : Bitcoin is particularly attractive to countries unable to control their money supply and obtain international loans secured in their own currency, according to Bronwyn Ruth Williams, future finance specialist at Flux Trends in Johannesburg.

  • The technology involved in using cryptocurrency was also easier — and cheaper — than several traditional financial options, Williams said, according to Bloomberg, adding that bitcoin use could be encouraged through incentives such as giving free bitcoins to people who open government wallets.
  • Details: Central African Republic President Faustin-Archange Touadera validated the law on Wednesday, recognizing bitcoin as the official currency alongside the West African CFA franc.
  • Tax contributions can also be paid in cryptocurrencies through government-recognized platforms, the government statement said.
  • The Central African Republic remains one of the poorest countries in the world. It ranks at the very bottom of the United Nations Human Development Index (188 out of 189 countries in 2020), according to a World Bank report.

By the numbers:

  • A recent poll by YouGov showed that 27% of US residents support the idea of ​​making bitcoin legal tender in the United States.
  • The survey, conducted among 4,912 American adults, also revealed that the younger generation has a more positive attitude towards bitcoin.