When I first saw the news on Twitter my first thought was what is the current government situation in this country. Recently across the African continent as a whole, a series of military coups have occurred. This has led to a ton of Western nations imposing sanctions as when these coups happen the military typically suspends the constitution and delays elections for several years and the leader of the coup install themselves in power. It was my hope when seeing the news that this was not one of those countries and at least had some level of stability. I was wrong.

Since gaining independence the Central African Republic had been ruled by a series of autocratic leaders. By the 1990s however, the tides turned and democracy was given a chance in 1993. This lasted 10 years till a military coup in 2003 which set off a civil war. Since this war began there have been two different peace treaties however they have failed to hold. The current "government" in power has resorted to some rather dark ways of maintaining power and fighting those they label as rebels. The political situation is so bad that when the last elections were held in 2020 and 2021 large of the country was under rebel control and thus could not partake in the election. To fight the rebels the government has outsourced most of the effort to the notorious Wagner Group, a Russian mercenary company that has been involved in all Russian conflicts including the invasion of Ukraine. 

Looking at the situation from a data-driven perspective does not paint a better picture. Human Rights violations are pretty common in this country. Women are treated as second-class citizens as violence against women is rampant (witchcraft is a punishable offense in the penal code) and approximately 68% of girls are already married before the age of 18. In most United Nations and NGO reports the Central African Republic is either last or second to last. In general, it is a nation that is struggling internally and since becoming independent has not generated significant development.

This lack of development and thus political instability and violence really should not be the case for this country. The Central African Republic has huge natural resource reserves that the world is craving. From the basics like gold and diamonds to others that are vital for the future like cobalt and uranium. For most countries, they would capitalize on these and develop extracting these resources in some way but the only industry for natural resources that currently exists is the diamond industry. 

Due to the violence and instability associated with this country and looking at the other country to make Bitcoin legal tender, El Salvador, an issue makes itself apparent. These countries have leaders that to the rest of the world either run in sharp contrast to norms/are considered unsavory leaders. The way that these two leaders have operated and run their countries is something that the rest of the world is not a huge fan of. In the CRA they have used Russian mercenaries and in El Salvador deals with gangs have been made to lower the murder rate and when that failed mass arrests took place. 

We have yet to see a developed country make much headway in this endeavor and that is something that I find a little concerning. Governments and regulators already do not like crypto and if governments of their adversaries/sanctioned leaders are the only ones doing it then a huge issue emerges. While there is still plenty of time for this to be sorted out it is something that the crypto community needs to keep an eye on. Working with regulators, law enforcement, etc. is going to be key to continuing to get more and more countries to accept cryptos overall. 

Typically I would say that any sort of adoption would be fantastic. We need to though monitor and be wary of who is accepting it as legal tender. It is a little concerning that we have not had a more stable country make it legal tender yet as the naysayers can continue to harp on how only shady individuals and organizations deal in crypto and try to leverage it for a huge clamp down.

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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