🇨🇫 The Central African Republic is the first African country to adopt #Bitcoin as legal tender.
It's also the world's 2nd-poorest nation, facing economic crisis.
Expert @PeterJHowson argues #crypto could lead to more resource exploitation & become a digital 'blood diamond.' 🧵
💎 In colonial times, European powers capitalised on war in Africa to profit from its resources.
“Blood diamonds” define diamonds sold to fund military action in diamond-rich areas.
Today, they're making a comeback in the form of #crypto, says @NorthumbriaUni’s @PeterJHowson.
🇨🇫 CAR follows El Salvador to become only the second country to make #bitcoin legal tender.
President Touadera said it was to “improve the conditions" of its citizens and make it “one of the world’s boldest" countries.
But a former PM said the law was a rushed “proclamation”.
🇨🇫 CAR is not ready for crypto, argues @PeterJHowson.
✈️ It doesn't have overseas workers who turn to #cryptocurrencies to send money home - and is unlikely to attract crypto investors.
💻 It also has very poor internet access.
⚡️ Only 14% of its population has electricity.
🚩 Logistical issues aren’t the only red flags for experts.
🚨 CAR’s government relies on foreign military assistance to keep control.
🇷🇺 This includes the Wagner Group, a private military security contractor with links to the Russian government, says @PeterJHowson.
🇷🇺 How does Russia come into play?
⚡️ @PeterJHowson explains #Bitcoin has enabled the country to fund covert operations across Africa despite sanctions.
💰 He also argues that it has helped funnel more money to lobbyists to expand Russia’s influence in the region.
It isn't just crypto’s role in CAR that should concern us, but elsewhere in Africa too, says @PeterJHowson.
🇪🇹 In Ethiopia, developers of #Cardano crypto are working with authorities to build surveillance systems, despite reported crimes against humanity by paramilitaries there.
📊 If you work in crypto, tell us: are you concerned about how it could be used across Africa?
tmsnrt.rs/3L1HO3G
💎 Research by @PeterJHowson’s team shows that across the world’s troubled spots, resource wars and economic crises are the ideal conditions for global trading in a new kind of high-tech ‘blood diamond’ - #cryptocurrency.
Read his op-ed in full now:
tmsnrt.rs/3L1HO3G
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