The Central African Republic Launches Its “Sango” Cryptocurrency And The First African “Zero Tax” Crypto Hub

(Agence Ecofin) – Despite concerns from the IMF, World Bank and BEAC, Bangui is continuing its virtual currency project aimed at attracting and “draw” the country’s natural resources.

Central African President Faustin Archange Touadéra (pictured) announced on Sunday, July 3, the official launch of the construction site of his own cryptocurrency, the Sango, and of the first “zero tax African crypto hub”.

“The Sango Coin will be the currency of the new generation of the Central African Republic”he said during a “online event” dedicated to the “the emergence of Sango or the emergence of a new digital monetary system” powered by Blockchain technology.

“The alternative to cash is cryptocurrency. For us, the formal economy is no longer an option.” added the head of state, indicating that the Sango coin will help attract investors and facilitate access to the country’s natural resources.

“The Central African Republic sits on a mountain of untapped wealth, and Sango Coin will be the direct access to our resources for the entire world,” he said, without elaborating.

  1. Touadéra also announced the launch of a “Crypto Island”, a platform that should let the Sango cryptocurrency become “the catalyst for the symbolization of vast natural resources” of the Central African Republic.

No details have been disclosed about the terms and timing of the creation of the Central African cryptocurrency and “Crypto Island”, presented as a tax-free zone where palaces, casinos, a large stadium and a water park would be built.

The Central African president, on the other hand, believed that cryptocurrencies are the solution to fight financial exclusion in the Central African Republic and in Africa.

“The smartphone is the alternative to the traditional banking, cash and financial bureaucracy”he said, lamenting that Africa, “where 57% of the population does not have a bank account”, suffers from a lack of infrastructure that “virtually inaccessible financial services for many residents”.

Concerns of International and Regional Financial Institutions

The Sango project (one of the country’s official languages), first unveiled last May, essentially aims to make the Central African Republic an international hub for cryptocurrency investment and development.

The second least developed country in the world according to the UN, the Central African Republic last April became the first country in Africa and only the second in the world (after El Salvador) to adopt Bitcoin as its official currency.

The adoption of digital finance by this country torn by civil war since 2013 has raised concerns among several international and regional financial institutions.

The day after Bitcoin was adopted as the official currency, the International Monetary Fund (IMF) called for: “Not to see Bitcoin as a panacea for the economic challenges facing Africa”.

The Central African Banking Commission (COBAC), the institution through which the Common Central Bank of CEMAC countries (BEAC) regulates banking activities, recalled that it “It is prohibited to convert, settle or hedge any transactions related to cryptocurrencies in currencies or FCFAs or have any link with them”.

The World Bank, for its part, spoke to her “concerns about the transparency of the project and its potential implications for financial inclusion, the financial sector and public finance in general, as well as environmental aspects”.

Critics of the Sango project furthermore regard it as “unrealistic” in a country where the internet penetration rate is around 11% and the electrification rate is limited to 14.3%.

Also read:

28/06/2022 – Central African Republic: The “Sango” digital currency project launches on July 3

25/05/2022 – The World Bank “concerned” by the proposed bitcoin investment center in the Central African Republic

24/05/2022 – The Central African Republic launches the first “legal” bitcoin investment center in Africa

13/05/2022 – Adoption of cryptocurrencies by the Central African Republic: the first response from the BEAC

27/04/2022 – Bitcoin becomes official currency in the Central African Republic: another opportunity for Russia

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