President Faustin-Archange Touadera has said that the traditional formal economy does give his country a chance to be competitive.
According to an announcement on the country’s official Facebook page, the Central African Republic (CAR) is set to launch a cryptocurrency investment hub.
The post revealed that the project would be known as “Sango.” According to the statement, President Faustin-Archange Touadera said
“The formal economy is no longer an option. An impenetrable bureaucracy is keeping us stuck in systems that do not give a chance to be competitive.”
President Touadera had hinted about the project on May 21 when he tweeted that “very soon we will announce the next planned phase” with the hashtag #Bitcoin.
The Facebook post included a link to the landing page for sango.org, where visitors can register for the waitlist. Those who register for the waitlist will get a link to a 24-page presentation.
Central African Republic has huge Bitcoin plans
The document includes additional information about the project’s objectives, including building the first legal CryptoHub in Africa, taking Bitcoin Legacy to the next level, and Sango – The Crypto Island.
Additionally, it plans to establish a Digital Nation Bank, develop a crypto wallet, and facilitate land purchases using Bitcoin. Crypto firms will also have access to the natural resources in the country, and there will be a “citizenship by investment” program with zero taxes to encourage foreign investors.
The new plan comes a month after the Central African Republic announced making Bitcoin a legal tender. This made it the second country after El Salvador to take that step.
International community does not support CAR’s Bitcoin decision
Several stakeholders have expressed concerns about the country Bitcoin’s decision. Analysts believe that there are significant barriers to Bitcoin adoption in the country.
The Central African Republic is one of the least developed countries in the world. It is ranked 188 out of 189 on the United Nations Human Development Index. Only 11% and 14% of its residents have access to the internet and electricity.
Some residents have also expressed their surprise at the government’s adoption, as most are unfamiliar with crypto.
Although the government said that the National Assembly passed the bill making Bitcoin a legal tender unanimously, there are claims that many opposition lawmakers abstained from the votes.
The International Monetary Fund has also called for caution. IMF Africa Department Director Abebe Aemro Selassie said,
“It’s really important to not see such things as a panacea for economic challenges our countries face.”