In a unanimous vote, the Central African Republic (CAR) adopted Bitcoin as legal tender on April 27th, 2022.
This is now the second country to adopt Bitcoin.
Overall, CAR is a relatively poor country but rich in diamonds. However, their GDP contribution is not the major news here.
We are witnessing the early stages of a globally adopted Bitcoin standard.
But why CAR?
Game theory would suggest countries that exhibit one or more of the following traits..
- Lower GDP
- Higher inflation levels
- Dictator style leadership
..would be more likely to adopt Bitcoin as legal tender compared to G20 type countries.
Such a radical change is usually fueled by a radical situation.
Its not till adoption is no longer viewed as radical that the G20 type countries are more likely to fall in line.
The fact that El Salvador is no longer the only country waving the Bitcoin flag means there is no longer a single target to attack.
Sorry not sorry IMF.
Every country is on the sidelines watching El Salvador and now Central African Republic lay the groundwork for what it means to make Bitcoin legal tender and what it could mean for their nation.
The more countries that come online, the more pressure will be placed on the countries that stay on the sidelines.
At a certain tipping point, countries still on the sidelines will feel the pressure for not capitulating and realize that if they don't act fast, they will be left behind the eight ball on a global scale.
Let the race begin.