Central African Republic (CAR) has launched its official digital currency, Sango Coin, as part of a plan to develop its financial industry.
In a virtual event by the CAR President Faustin Archange Touadera on Sunday, he said that “Sango Coin will be the currency for the next generation.” The digital money may be rolled out in the third quarter.
In May this year, the President talked about building the continent’s first cryptocurrency investment hub. The project, which the country tagged “Project Sango” is Africa’s first-ever crypto initiative, and “will,” according to a white paper published by the CAR government, “enable people to transact using Bitcoin and other cryptocurrencies tax-free.”
Central African Republic will become the second country to adopt Bitcoin after El Salvador. In June 2021, El Salvador became the first country in the world to officially adopt the largest and most popular cryptocurrency bitcoin as legal tender
President Touadera talked about the need for financial inclusion and the need for the country’s citizens to easily have access to cryptocurrencies via smartphones. Comparing this to the country’s underutilized banking sector, he said that this project come with a lot of benefits. In his won words,
“The citizens will benefit on every level. They will live in a nation that has reached its full economic potential, which implies prosperity and jobs. Additionally, they will profit from virtual transactions since they offer faster access, quicker execution, less red tape, and lower costs than traditional banking.
“By cutting costs, this technology will give the continent a distinct character. There is no time to wait because this vision is ideal. […] The formal sector is no longer an option for us”, he continued.
It is worthy to note that the World Bank and the International Monetary Fund have raised concern on this development, “citing a lack of transparency and the potential effect on financial inclusion.” This has to do with the fact that Central African Republic is one of the world’s poorest countries with significant infrastructure gaps.
The success of this crypto plan is worsened by the fact that the market capitalization of digital assets has dropped by about $2 trillion since late 2021, with Bitcoin down more than 55% since the beginning of year.
