Final answer:
The capital of the Confederacy was Richmond, Virginia, because it was centrally located and had economic importance.
Step-by-step explanation:
The capital of the Confederacy was Richmond, Virginia, because it was centrally located and had economic importance. It was also the former capital of the United States.
The strategic coastal position of Charleston, South Carolina offered better trade opportunities, but it was not chosen as the permanent capital.
Atlanta, Georgia was not the capital of the Confederacy, although it represented the South's progress.