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The CAR is taking its crypto aspirations up a notch by launching a native digital currency that will be backed by Bitcoin.
Central African Republic (CAR) has launched its national crypto “Sango Coin” as part of a push toward the metaverse. According to CAR President Faustin-Archange Touadéra, the country’s national crypto will exist alongside Bitcoin (BTC) as recognized digital currency. Touadéra also stated that Sango Coin would play an integral role in modernizing the infrastructure of the landlocked Central African country, including a planned metaverse project.
At a recent virtual event called the “Sango Genesis Event,” Touadéra delivered his keynote address on CAR’s crypto vision, saying:
“Sango Coin will be the next-generation currency for [the] Central African Republic.”
In addition, the president of the African country also suggested that digital currencies are critical to financial inclusion. As he put it:
“The alternative to cash is cryptocurrency, for us, the formal economy is no longer an option.”
Back in April, CAR became the first African nation to adopt BTC as legal tender.
Applicability of CAR Crypto Project Under Scrutiny
CAR’s move to adopt crypto has raised a few eyebrows in the international community – including the International Monetary Fund (IMF). This is because the African country has low internet usage and unreliable electricity.
Touadéra explains that the Sango Coin will act as the “gateway to the natural resources of the Central African Republic”. In fact, back in early June, the African nation announced plans to tokenize its minerals and natural resources. Such include petroleum, diamonds, and copper, to name a few. The president stated that CAR will offer tokenized access to mineral resources. However, such access would only be available to crypto and digital asset projects establishing a presence in the country. In addition, the CAR natural resource tokenization initiative would also come under the auspices of Project Sango.
CAR is currently eyeing a crypto-based economy on the back of Sango Coin, driven by private investment. In addition, this metaverse-oriented scheme also includes the establishment of a crypto-driven island along the Oubangui River. Touadéra is reportedly banking on blockchain adoption to revamp and shake up CAR’s digital architecture. For instance, the president’s administration intends to use blockchain to digitize CAR’s land registry system.
The country’s finance minister Hervé Ndoba, also at the Sango Genesis Event, was on hand to further comment on Sango Coin. According to Ndoba, the national crypto will have the backing of Bitcoin, although the exact nature of this remains unclear.
The Central African Republic remains one of the least developed countries in the world, despite its abundant natural resources. Regardless, the country’s enthusiasm for digital currencies does not seem to have waned following the recent loss in their market value.
El Salvador became the first country in the world to adopt BTC as legal tender and has since doubled down on its BTC commitment. The Central American country has been periodically buying the dip, and plans to establish a dedicated BTC city. However, the country also postponed its Bitcoin bond initiative for the second time in early June.