After defying IMF on Bitcoin, Central Africa Republic to launch cryptocurrency investment hub

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  • CAR is making preparations to completely include cryptocurrencies in its economic policy with the planned launch of a Bitcoin cryptocurrency investment hub
  •  “SANGO” cryptocurrency project, which will be released in the near future, is open to prospective investors, who can register on a waiting list on the official website
  • CAR does not have the essential digital infrastructure to support the growth of cryptocurrencies on a bigger scale, which casts doubt on the viability of adopting bitcoin as a currency

The Central African Republic intends to go against the advice of the International Monetary Fund and continue using bitcoin as its official currency with the planned launch of the CAR Bitcoin cryptocurrency investment hub.

After making the announcement that it will open Africa’s first legal bitcoin investment hub, the President of the CAR, Faustin-Archange Touadéra, stated that the country is now completely ready to accept cryptocurrencies.

CAR is making preparations to completely include cryptocurrencies in its economic policy.

President of the Central African Republic, Faustin-Archange Touadéra
[Photo/Reuters]
The International Monetary Fund (IMF) issued a warning to the Republic, which is one of the world’s least developed nations that because of the highly speculative and unpredictable character of blockchain-powered digital assets, there is a risk that integrating them in such a massive scale could be detrimental to the nation’s financial system due to the nature of these assets being extremely volatile.

The fund stated that there are significant legal, transparency, and economic policy concerns associated with the adoption of Bitcoin as legal tender.

“SANGO” the Bitcoin cryptocurrency investment hub

Despite this, the “SANGO” cryptocurrency project, which will be released in the near future, is open to prospective investors, who can register on a waiting list on the official website.

In a statement released on Monday, Touadera stated that “a formal economy is no longer an option.” “We are being held hostage by a bureaucracy that is impossible to navigate, and as a result, we are unable to change to more competitive solutions.”

Gourna Zacko, who is the minister of digital economy and telecommunications, and Calixte Nganongo, who is the minister of finance, were the driving forces behind the passage of the Bitcoin bill in the National Assembly of the country, which was done with the intention of “economic recovery.”

How Will SANGO Change The Economy?

The National Assembly of the country launched the initiative with the backing of the nation’s President and the provision of a paper containing 24 pages detailing the objectives of the project.

SANGO’s stated mission is to “pave the road to a digital future of unlimited possibilities,” as stated in the accompanying document.

In addition, SANGO intends to “take the Bitcoin heritage to the next level” and establish a “cryptocurrency economic zone” ( bitcoin cryptocurrency investment hub) on Sango Island. This will allow investors to offer ideas for the cryptocurrency’s future development as well as observe and contribute to existing ones.

The paper also indicated that the Central African Republic had plans to “facilitate land acquisition in bitcoin for investors globally” and to create a Digital National Bank. Both of these objectives were included in the document. In addition, the government stated in the statement that it would “completely support” access to the country’s natural resources, such as gold, uranium, diamonds, oil, and lithium. This information was included in the paper.

The legislative structure of the Platform will have an impact on the commercial sector of the country because it will include an online business registration system, citizenship by investment programme, and an electronic residency programme. The administration intends to accomplish these aims prior to the year 2022 coming to an end.

In addition, the document mentioned an initiative to construct a Bitcoin wallet that would be powered by the Lightning Network, which is Bitcoin’s second-layer protocol and enables transactions to be completed more quickly and for a lower cost.

In addition to being able to transmit, receive, and store Bitcoin, the wallet will also contain an integrated accounting system and be compatible with point-of-sale (PoS) systems, which will allow companies to accept Bitcoin payments. With the wallet, you can send and receive Bitcoin.

According to what was stated in the paper, the government intends to complete “the full digital transition” by the end of the year by putting the finishing touches on the internet interconnection known as the Central African Backbone (CAB).

Significant Problems  

Diamonds, gold, and a variety of other precious metals and stones can be found in abundance in this country. Despite this, the country does not have the essential digital infrastructure to support the growth of cryptocurrencies on a bigger scale, which casts doubt on the viability of adopting bitcoin as a currency.
There has been a lot of concern from many specialists, including parliamentarians and as mentioned earlier the IMF.

Also, the six-nation Economic and Monetary Community of Central Africa’s regional banking authority recently issued a reminder about its cryptocurrency ban, stating: that the prohibition was intended to ensure financial stability given that the digital asset class is volatile and difficult to regulate.

In addition, Central Africa’s regional banking regulator for the six-nation Economic and Monetary Community of Central Africa also banned cryptocurrencies.

Read: Central African Republic first African country to legalize bitcoin

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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