Second country to adopt Bitcoin as national currency is the Central African Republic

Illustration by Alex Castro / The Verge

The Central African Republic has become the second country in the world to adopt the digital currency.

According to the government, a bill to adopt the virtual currency was passed by the country's parliament. The office of CAR president Faustin-Archange Touadera claimed the move would improve the conditions of Central African.

Financial experts and analysts are confused by the motives for the move. CAR is rich in resources like gold and uranium, but is still one of the world's most impoverished countries. It has been wracked by civil war since 2012 and only 11 percent of the population have access to the internet. It is one of six states in Africa to use the Central AfricanCFA Franc as its currency, which is backed by France and pegged to the Euro, according to a law firm.

It has been suggested that CAR's adoption of Bitcoin is an attempt to undermine the French economy.

Others say the move could be tied to CAR's relationship with Russia. The country of CAR abstained from a United Nations vote condemning Russia's invasion of Ukraine, while the government was accused of using mercenaries from Russia to fight rebels.

The French Institute of International Relations analyst said that the context of the Russian partner facing international sanctions encouraged suspicion.