The people of the Central African Republic (CAR) are on a mission to become the first country in Africa to enable the spread of Bitcoin. They are the second largest country in the world (after El Salvador) and have officially adopted Bitcoin as the legal tender used for regular commerce and tax payments.
In April 2022, President Forstan Archantu Adela signed a bill (unanimously passed) to make Bitcoin and the CFA franc the legal tender of the Central African Republic.
Understand future challenges
President Tuadella has invited a group of Bitcoiners with various areas of expertise to Bangui, the capital of the country, to advise the country on issues such as setting up Internet access, connecting to the Lightning Network, and developing mining facilities. ..
According to them, seven Bitcoin experts said, “To better understand the situation in the Central African Republic and identify the main factors that promote or impede Bitcoin adoption in the country,” 1 in the country. Spent a week report..
Bitcoin delegation to the Central African Republic. From left to right: Nicholas Brutei, Sebastian Guspiro, Jean-Marie Cambaseles, Jean-Christoph Basnell, President Tuadella, Alfred Poroko, Noor El Bawab, David Oren, Richard Detente, Daniel Kokoend. (Credit / Gouspillou)
“We arrived with the intention of exploring the strengths and weaknesses of the country without prejudice and proposing solutions that are adapted to the reality of the field.” — Sébastien Gouspillou
In their recommendations, the group addressed what they saw as a CAR challenge.
- Low access to electricity
- Low internet access
- Low percentage of mobile phone users
- Lack of educational institutions specializing in Bitcoin
- ID card required to purchase a SIM card
The areas in which CAR has strengths in successfully adopting Bitcoin are:
- Favorable regulation
- Use of mobile money
- Only 5% of the population is in banks
Access to electricity
The report emphasizes that CAR has two different energy networks. Bangui has good access to electricity. Not so much in remote rural areas.
“Energy disparities between Bangui and villages require special attention to avoid economic disparities between cities and isolated areas.”
Despite the many potential hydropower plants, many projects have not yet been realized due to lack of funding.
Internet access
Unlike El Salvador, where internet access is widespread, Central African Republic has internet access Estimated It will be only 11.4% of the population in January 2021.
The African Development Bank is currently working with CAR to cover fiber optic internet in 70% of the region, which accounts for 90% of the population. An optical fiber of 1,010 kilometers has already been installed and will be open to the public from June 2022.
With a population of 4.8 million, CAR has some interesting statistics that make it a great place to adopt Bitcoin. The report examined the current data and found that:
- 2 million mobile subscribers
- Approximately 800,000 unique subscribers
- 300,000 customers with access to mobile internet
- Bangui City 100% 3G Coverage
Buying and selling Bitcoin
According to the report, “Mobile credit is one of the most used payment methods in the country, so it is imperative to use a known model and not disturb user habits. Bitcoin through mobile credit retailers. This method of buying and selling is an already established model in sesame (DRC) and other African countries. “
The author recommends leveraging 12,000 mobile credit retailers in the country to install Bitcoin ATMs in safe cities.
Use Lightning Network
The report author believes that it is best to deploy Bitcoin through people’s smartphones using the Lightning Network installed on the phone system.
In an interview with Bitcoin Magazine, co-founder of the BigBlock Group Bitcoin Mining Company, Sébastien Gouspillou said:
“In subregions, we can see that smartphone ownership is rising very fast, for example, much faster than the internet and banks. It can be based on the spread of Bitcoin in the country. Based on this ongoing rollout, we are working on the idea of Lightning transactions over the phone network … Samson Mow and other geniuses are working on recruitment on our terms, now in the countryside. “
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Utilizing abundant hydroelectric power generation
Like El Salvador, CAR has the great advantage of being a rich energy source for Bitcoin mining. The report details that the potential of hydropower is astonishing from 700 to 2000 MW. In an interview with Bitcoin Magazine, Gouspillou said:
“The goal is for the mining industry to contribute to the development of electricity by helping to finance new power plants. These are huge projects and Big Block Green Services is too small to run on its own. We need help from a large mining company. “
Bonds for financing Bitcoin mining
The authors of the report suggest that the country follows the example of El Salvador and sells government bonds as a way to raise money to build mining facilities.
“Similar to El Salvador’s Bitcoin bonds, we recommend issuing government bonds through Bitcoin’s liquid network. These bonds will fund the construction of the regional solar / hydraulic energy infrastructure and Bitcoin mining. The mining infrastructure will also benefit the Central African Republic with a source of revenue. El Salvador will raise $ 1 billion in bonds thanks to Bitcoin. At El Salvador’s Bitcoin Bond Architect. We recommend a meeting with a Samson Mow team. “
Conclusion
I asked Gouspilllou if he thinks the CAR people are supporting the President with this Bitcoin initiative.
“Yes, everyone has a role to play. Citizens need to take ownership of Bitcoin and educate the people around them. Knowledge is the citizens, Lightning, and we have already introduced to Bitcoin. It will be shared by all citizens formed by the next delegation of Bitcoin. “
“I should be convinced that in a speech at the big CEMAC (Economic and Monetary Community of Central Africa) conference, Central Africans should be convinced of one thing, which is that their presidential decision was excellent. He argued that it was foresighted, and with this certainty, Bitcoin officials around the world need to support this president, and just by adopting Bitcoin, he also supports it. need to do it.”
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