Central African Republic to launch official digital currency hub

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The Central African Republic (CAR) has started unveiling its digital currency initiatives. The country’s president, Faustin-Archange Touadera, announced the country’s first “crypto initiative” called Sango.

The initiative bears the name of the second official language of the country and enjoys the support of the National Assembly. In a statement shared on CAR’s official Facebook account, the president stressed that the initiative goes beyond politics and administration and has the potential to transform the country’s financial system.

“Building the first legal crypto hub in the heart of Africa will enhance the crypto experience by taking Bitcoin adoption to the next level, potentially bringing the world’s most unconventional space,” the statement read.

Adding that the adoption of Bitcoin and digital currencies can usher in a new economic era with enormous potential. The Sango project aims to achieve this by making digital currencies accessible to everyone.

According to a 24-page presentation of the initiative, Sango will be a “crypto” island where digital currency trading will have legal recognition, the first of its kind in Africa.

The presentation informs that the legal framework for its implementation is already being developed and will be ready before the end of the year. Specific provisions of the framework include zero percent corporate tax, citizenship by investment, digital ownership and identity, online business registration and an e-residency program.

It also includes laws on tokenization and crowdfunding. The country is urging digital currency companies to join claiming it will support access to natural resources such as gold, diamonds and uranium. A new body, the National Digital Bank (BNDRC), will oversee the industry.

CAR ignores worried observers

The move comes just after the CAR adopted Bitcoin as legal tender last month. This makes it the second country to do so in the world after El Salvador and the first in Africa.

According to a Reuters report, observers have raised many questions about the decision. These include why a poor country with low internet usage and unreliable electricity will adopt BTC as legal tender.

The IMF and the Central African Banking Commission (COBAC) are among the country’s critics. The latter, which is the regional regulator of the Central African banking sector, said member countries should be reminded of the ban on digital currencies. CAR officials responded that the country maintained its right to sovereignty.

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