In a bold move that signals a fresh chapter in its financial landscape, the Central African Republic (CAR) has taken steps toward tokenizing its abundant natural resources, despite the lukewarm reception of its indigenous digital currency, Sango Coin. Unveiled by the Sango project team, this groundbreaking initiative ushers in what they tout as a “new era of financial empowerment through blockchain technology.” CAR’s legislative body has given the green light to the tokenization of land and resources, with hopes of positioning the nation as an attractive business hub within Africa.
The new legislation not only opens doors for resource tokenization but also paves the way for a streamlined digital business licensing process and electronic visa applications, catering to both local and international companies. Upon obtaining licenses, enterprises can seamlessly harness the capabilities of blockchain on the Sango platform, setting the stage for efficient and secure operations.
The Sango project, which was launched last year with resource tokenization at its core, aims to facilitate investment in CAR through its state-backed token, Sango Coin. Unlike a Central Bank Digital Currency (CBDC), Sango Coin is supported by Bitcoin on a separate sidechain network. However, the journey has been marred by hurdles.
CAR’s Constitutional Court struck down the use of Sango Coin for purchasing land and citizenship as unconstitutional, just two months after the token’s initial coin offering (ICO) began. The ICO itself didn’t fare exceptionally well either, despite offering 200 million Sango Coins for sale at $0.10 each during its genesis cycle. Citizens bought less than 8 million coins during that period.
In a turn of events, CAR made headlines in April 2022 by becoming the second nation, after El Salvador, to accept Bitcoin as legal tender alongside the CFA Franc. However, this decision was reversed roughly a year later, creating ripples in the crypto landscape.
Nevertheless, President Faustin-Archange remains resolute in his commitment to cryptocurrency. Sango credits the leader for championing the new legislation, emphasizing his tenacity in the face of challenges. This resolve parallels that of El Salvador’s President Nayib Bukele, who staunchly defended his nation’s adoption of Bitcoin as legal tender despite external criticisms. El Salvador has since embarked on Bitcoin education and mining initiatives, enlisting prominent Bitcoin enthusiasts as personal advisors.
As CAR navigates the intricate terrain of resource tokenization, the echoes of both setbacks and determination are resonating in this burgeoning crypto journey. With the visionary President at the helm, the Central African Republic’s aspirations to capitalize on blockchain technology and digital assets paint a portrait of a nation determined to carve its own path in the evolving financial landscape.