*The International Monetary Fund has cautioned African Governments that a 鈥榬obust鈥� payment system with financial transparency and governance framework must be in place when adopting cryptocurrencies

Isola Moses | 绿帽献妻

Following the Central African Republic鈥檚 recent adoption of the cryptocurrency as a legal tender in the country, the International Monetary Fund (IMF) has warned that Bitcoin is not a cure-all for Africa鈥檚 current economic woes.

Abebe Aemro Selassie, Head of the IMF鈥檚 African Department, Thursday, April 28, 2022, said that a 鈥渞obust鈥� payment system with financial transparency and a governance framework must be in place when adopting cryptocurrencies.

鈥淚t is really important to not see such things as a panacea鈥� for the challenges that countries face, Selassie said.

The Central African Republic has become the second country in the world to adopt Bitcoin as official currency after El Salvador, which did so last year.

The CAR is one of the planet鈥檚 poorest and most troubled nations, locked in a nine-year-old civil conflict and with an economy heavily dependent on mineral extraction, much of which is informal, AFP report said.

It is among six central African countries that share the CFA Franc 鈥� a regional currency that is backed by France and pegged to the euro.

The office of CAR President Faustin Archange Touadera Wednesday noted that lawmakers passed Bitcoin legislation and that he had signed it into law.

Touadera鈥檚 chief of staff, Obed Namsio, said Wednesday that the move 鈥減laces the Central African Republic on the map of the world鈥檚 boldest and most visionary countries.鈥�

The IMF had heavily criticised El Salvador鈥檚 adoption of the cryptocurrency last year, warning of 鈥渓arge risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection鈥�.

Other countries have already initiated legislative processes to adopt bitcoin, according to the specialised site Coinmarketcap.com, report stated.

Bitcoin鈥檚 value has swung wildly, soaring by 150 percent last year to reach a record $68,991 before falling sharply in recent months.

It was worth almost $40,000 as of Thursday.