Africa And Latin America Are Increasingly Adopting Cryptocurrencies, While Demand For Such Products Spikes

While leading nations in Europe and North America are still lagging in terms of regulations, several countries in Africa and Latin America are already working on some form of legislation in order to use cryptos legally.

After Nigeria’s plans of reconsidering its crypto ban and developing a regulatory framework, the Central African Republic (CAR) is next to introduce a crypto regulatory framework. CAR lawmakers voted in favor of adopting a new bill to regulate the nascent industry and facilitate digital currency’s use in financial markets.

Despite the rumors that CAR even adopted Bitcoin as a legal tender in the country, Herve Ndoba, the country’s Minister of Finance noted that CAR has just made its regulatory framework a reality, making it early for Bitcoin adoption.

Regulating the crypto space

The Central African Republic’s National Assembly approved the regulations last week, with a new regulatory body introduced as a part of the regulation. According to Nboba, the new law will push CAR to the frontline in digital asset adoption.

“There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology. This time, we can actually say that our country is one step ahead,” Nboba noted.

However, Nboba differentiated CAR’s legislation from the likes of El Salvador’s, which basically implies that all merchants in the country to accept BTC for payments, whether they want to or not. In contrast, CAR’s government is focused more on the protection of its citizen when they decide to use cryptos in the country.

Trouble for crypto adoption

Despite pushing the new law and approving crypto regulation in CAR, Internet penetration in the country is the fifth-lowest in Africa at just 11.3%, according to Statista, while Kenya, for example, leads the continent at 85% penetration.

Furthermore, several of the most influential people in the country have expressed their “strong reservations” against adopting cryptos, since such a move “will promote the laundering of dirty money and make the country a hotbed of tax evasion and fraud.”

Panama joins the crypto adoption race

Latin America is also adopting crypto, as Panama’s economic affairs committee approved the introduced in September 2021 crypto bill, which seeks to establish a regulatory framework for the digital assets industry as well as pave the way for widespread use of blockchain technology.

Congressman Gabriel Silva introduced the bill last year, adding that it would “make Panama a country compatible with the blockchain, crypto assets, and the internet.”

Silva also noted that the new bill would “give legal clarity to the use of crypto assets and digital economy platforms” and “create employment and promote financial inclusion.”

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