Central African Republic Is Betting Big on Bitcoin Amid Market Turmoil

Key Insights:

• The president of the Central African Republic is launching a crypto hub to attract digital asset businesses.
• Dubbed Sango, the project will also create a crypto island – an SEZ in the metaverse.
• In April, the country became the second in the world to adopt bitcoin as a legal currency after El Salvador.

It came as a surprise among the crypto community when the Central African Republic (CAR) followed El Salvador’s suit in adopting bitcoin (BTC) as a legal tender for use in regular commerce and for paying taxes.

While the internet was flooded with compliments and criticisms, the government argued that the move would secure and independent financial future for the country.

In the meantime, President Faustin-Archange Touadéra took another leap in announcing the launch of its first significant crypto initiative dubbed the “Sango project.” The project came with a slew of plans to attract global crypto businesses and enthusiasts.

Following the unanimously adoption by the National Assembly of the #BTC legal tender status, we are pleased to showcase the first concrete initiative! It goes beyond politics&administration & has the potential to reshape #CAR’s financial system! #bitcoinhttps://t.co/1oxLHOen6q

— Faustin-Archange Touadéra (@FA_Touadera) May 24, 2022

Per its website, Sango seeks to “pave the way to a digital future of endless possibilities,” though the project conflates bitcoin initiatives with non-fungible tokens (NFTs) and metaverse pilots.

“Crypto hub” is coming

The CAR government, on Monday, announced that Sango would be launched Sango Genesis event will kick off the country’s plan to turn CAR into a “crypto hub” that attracts investors worldwide.

With #Bitcoin as #legaltender & inspiration, our country opens a new chapter in its inspiring journey towards a brighter future via #blockchain #tech.
Everyone is welcome to witness the Sango Genesis Event that will be broadcast on the 3rd of July, on https://t.co/LIQiKGhcBS. pic.twitter.com/7u6knv5f6w

— Faustin-Archange Touadéra (@FA_Touadera) June 27, 2022

President Toudéra reconfirmed his commitment to adopting bitcoin as a legal tender in his tweet. He noted,

“With Bitcoin as legal tender & inspiration, our country opens a new chapter in its inspiring journey towards a brighter future via blockchain tech.”

According to the press release shared by the Prez, the project will also include the “tokenization” of the mineral-rich country’s natural resources. Furthermore, he called the conference the “most revolutionary in the history of blockchain technology and the Web3.”

Sango’s plans

Besides establishing a “legal crypto hub” recognized by a country’s parliament, CAR has also mirrored El Salvador’s plan to build a “bitcoin city.” Sango’s plans include creating a virtual “crypto island,” a special economic zone (SEZ) in the metaverse.

According to a 24-page slides deck detailing Sango’s goals, the crypto “island” would:

• Allow users to propose, view, and contribute to the future developments of Sango island.
• Link the real world to the metaverse representation while adding extra layers for future expansion.
• Allow users to manage their NFTs in the metaverse to unlock additional functionalities like marketplace, ownership, and funding.
• Allow NFT minting in the metaverse.

In addition to establishing a “crypto island,” Sango would develop a bitcoin wallet, digital identity and ownership solutions, and tokenization, among others.

The president of CAR recently slapped back his reply to critics of the country’s bitcoin decision, arguing that understanding bitcoin’s disruptive power is crucial.

Understanding #Bitcoin is crucial to acknowledge its disruptive power to bring long term prosperity. Mathematics don't account for human emotions.Future generations will look behind at these very moments to 🥳 our strength & unity in choosing the right path during hard times #BTC

— Faustin-Archange Touadéra (@FA_Touadera) June 14, 2022

Meanwhile, the World Bank has disapproved of the CAR’s regulation of adopting bitcoin as a legal tender. The bank also noted that it would refrain from giving any support to CAR’s Sango venture.