Last April, the Central African Republic made Bitcoin its national currency in the same way as its fiduciary currency, the CFA franc, and in the process launched the Sango project that should make the African country the first on the continent. . where foreign digital investors are tax-exempt and given Central African nationality. So, will the future of crypto currencies play out in Africa? What is the Sango Project? Can we invest in digital currencies and benefit from its evolution?
The Central African Sango Project
If the Central African Republic recognizes BTC as its official currency in 2022, after El Salvador in 2021 and an Ecuadorian ethnic group, the country does not seem to have the strength of its ambitions for the time being with only 11% of the population having access to to the Internet. But according to the words of the Central African President and National Assembly, every effort will be made in the coming years to make the Central African Republic a crypto hub in Africa and this will be through the Sango project. This project would aim to create the first “African crypto hub”, i.e. a center that would welcome crypto investors and move BTC into a recognized currency position in the same way as all global fiat currencies.
The Central African Republic, a welcome country for cryptocurrencies?
The government agencies responsible for the Sango project are responsible for legalizing cryptocurrencies in Central African territory and for creating the National Digital Bank of the Central African Republic. The state ensures that it supports this project and will ensure that all foreign crypto-active investors are attracted by providing them with access to Central African commodities such as diamonds, gold, iron ore…
The state will provide the opportunity to buy land in Bitcoins, Sango Island will double its hosting tax as it will be present in the metaverse and open its doors to NFTs. This project works on paper, but the data doesn’t really explain where Sango will be built, how the infrastructures will be installed, which companies will be contacted for the project, how the internet connections will be provided, etc.
The Central African Republic’s legitimate ambitions may remain utopian despite Russian support in the area. Indeed, it appears that Russia has been toying with the officialization of BTC as its national currency. This data sheds new light on the creation of Sango Island, which could become an important geopolitical platform in the future.
Why invest in cryptocurrencies?
The Central African project is ambitious and even if it fails, it shows the growing interest in digital currencies. Bitcoin still represents a significant investment, despite its decline over several months (from $70,000 in November 2021 to $29,745 in June 2022). Its increase is not expected for the coming months, but there is no doubt that the price of BTC will return to the highest level during the next Bitcoin Halving in 2024. During this event, the number of Bitcoin will be halved (in 2019 it had fallen from 26.5 to 12.25 and at the next Halving it should be 6.125), which will automatically increase the value.
How to invest in cryptocurrencies?
To invest and buy Bitcoin or other cheaper digital currencies (such as Tron, Tether, which are currently worth about $0.99 per unit), it is possible to go to the site of a French broker such as AvaTrade, E Toro and an online account that offers the possibility to buy all digital currencies in the financial markets. It is then possible to sell at a profit or wait for the price of the currency to rise in the medium or long term, it all depends on the investment strategy.