The Central African Republic adopts Bitcoin as legal tender while BTC price drops below $40K

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YEREVAN (CoinChapter.com) – As announced on Friday, the Central African Republic (CAR) became the first country on the continent to accept Bitcoin as legal tender. The National Assembly unanimously adopted the bill hoping that it would benefit the “country’s plan for economic recovery and peacebuilding” on track.

Bitcoin as legal tender in the Central African Republic

In detail, the adoption of legal tender implies that cryptocurrencies, particularly Bitcoin, can be used as means of payment through specific legislation. However, the country’s path toward crypto adoption has not been long in the making. According to a 2018 study by Ecobank, the Government of CAR has not articulated a public stance concerning the use of cryptocurrencies and their legality.

Also read: Is Michael Saylor selling Bitcoin? Not so fast.

However, the Bank of the Central African States (BEAC) has come far since. Moreover, In 2021, AfricaArena predicted venture capital funding in African startups to top $2.3 billion, compared to $130 million in 2016.

Meanwhile, the continent also faces multiple challenges when it comes to adopting crypto for everyday transactions. For example, according to Gemini’s 2022 Global State of Crypto report, education is the most significant global barrier to crypto ownership.

The study asserted that 40% of African respondents had not purchased any digital assets because they did not understand buying and holding. Other barriers to Bitcoin adoption included a lack of trust and apprehension about Bitcoin price volatility.

Also read: New York set to become first U.S. state to ban Bitcoin mining.

The volatility concerns appear to be on point, as the flagship cryptocurrency dropped below a significant support level on Apr. 25.

Bitcoin (BTC) falls below $40K again

The alpha crypto traded around $38,300 in the European session Monday, after a 3% correction in the previous 24 hours. As a result, the BTC/USD price action slid below a significant support line that has been instrumental since Jan 2022.

As CoinChapter previously reported, Bitcoin had formed a Rising Channel, which predicted price fluctuations within a narrow range. However, the digital asset broke below the Channel’s support and could face a further 11% decline to $34,000.

Also read: Crypto analyst sees a plunge ahead for Bitcoin(BTC) – what to expect?

Several crypto analysts supported the bearish claim, citing a prolonged drawdown.

Whether Bitcoin could recover back above $40,000 in the upcoming two days or not is unclear. However, the turbulent market situation and the dire technical prognosis wave a bearish flag for the alpha crypto.

Also read: Bitcoin leaving exchanges hit its lowest number since August 2018 as BTC eyes $50K-retest.

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