The Central African Republic is the second country to accept Bitcoin as its official currency.

Following El Salvador’s acceptance of Bitcoin as a national currency last year, the Central African Republic (CAR) has become the second country to do so.

According to Reuters and BBC News, the government of the Central African Republic claims that a bill to adopt Bitcoin was voted unanimously by the country’s parliament. (However, previous CAR Prime Minister Martin Ziguele objected to the bill being passed “by proclamation.”) The decision, according to the president of the Central African Republic, Faustin-Archange Touadera’s office, will “better the conditions of Central African citizens” and identify CAR as “one of the world’s bravest and most imaginative governments.”

However, the causes behind the shift perplex geopolitical analysts and financial specialists. CAR is a landlocked country with abundant natural resources such as gold and uranium, but it is nevertheless one of the poorest countries on the planet. It has been ravaged by civil war since 2012, and just 11% of the 4.8 million people have internet connectivity. According to law firm Baker McKenzie, it is one of six African countries to use the Central African CFA franc as its currency, which is “a regional currency backed by France and pegged to the Euro.”

Some have speculated that CAR’s embrace of Bitcoin is a ploy to destabilise the CFA franc and send a message to France, the country’s former colonial ruler. “It’s a massive middle finger to the French economic system,” Chris Maurice, CEO of cryptocurrency exchange Yellow Card, told Reuters.

Others speculate that the decision is linked to CAR’s tight ties with Russia. CAR was one of the only countries to vote against a UN resolution condemning Russia’s invasion of Ukraine, and the government has been chastised for using mercenaries from Russia’s Wagner Group to combat rebel groups.

“Given the systematic corruption and a Russian partner facing international sanctions, the setting does invite mistrust,” French Institute of International Relations expert Thierry Vircoulon told the AFP news agency (via BBC News).

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