A look at the Central African Republic's “Sango” crypto hub

A look at the "Sango" crypto hub of the Central African Republic - central african republic flag 01The Central African Republic's adoption of bitcoin as a fiat currency has received applause, compliments and much criticism. Undeterred by criticism, the local government is moving to provide a digital currency infrastructure to its citizens.

On May 24, RCA President Faustin-Archange Touadera connected to Twitter to announce the launch of the country's first significant cryptocurrency initiative, called "Sango," unveiling plans to attract cryptocurrency enthusiasts globally.

Attracting global cryptocurrency enthusiasts

Touadera unveiled plans to create RCA's crypto hub soon after the National Assembly unanimously adopted Bitcoin as fiat currency. The National Assembly of the CAR initiated the crypto-centric initiative called Sango with the support of Touadéra.

A 24-page document outlines the objectives of the project, underlining that Sango aims to “pave the way for a digital future of infinite possibilities”. In his Tweet, Touadéra expressed his support for Sango, stating that the project has the "potential to reshape CAR's financial system."

The document also presents RCA's plans, including "facilitating the acquisition of bitcoin land for investors around the world" and creating a digital National Bank. In the document, the local government also stated that it will "fully support" access to its natural resources, such as gold, diamonds, uranium, lithium and oil.

Interestingly, Sango will have an island nicknamed "the crypto island", the "first island in the metaverse supported by a real island".

According to the document, Sango's legal framework will include an electronic residency program, citizenship by investment, online business registration, and no income or corporation tax. At present, the CAR plans to develop this dedicated legal framework by the end of this year.

The document also talks about creating a bitcoin wallet to send, receive and store BTC, compatible with the Lightning Network. The Lightning Network is bitcoin's second-tier protocol for cheaper and faster payments.

RCA intends to finalize the Central African Backbone's (CAB) internet interconnection by the end of the year to power its "entire digital transformation". In the nation's “cryptocurrency economic zone”, users will be able to propose, view and contribute to future crypto hub developments.

CAR “baffles the cryptoverse”?

While CAR's recognition of BTC as fiat currency has been welcomed by many, it has received a lot of criticism from regulators and financial experts around the world. The International Monetary Fund has said that the adoption of bitcoin by the Central African Republic could be worrying and present a number of challenges for the country and the region.

Many reports also revealed that the government adopted BTC as legal tender without consulting the regional central bank, which operates a common currency used by six countries, including the Central African Republic.

Notably, the nation is one of the poorest in the world and has become the second to adopt BTC after El Salvador. Touadéra's decision also aroused criticism from opposition parties.

However, CAR plans to develop a hub to attract cryptocurrency businesses and enthusiasts to the nation, as Sango aims to take "Bitcoin's legacy to the next level." According to data from the World Bank, the news of the Sango hub is bound to lead foreign investors in the country, probably in an effort to further develop a nation that has one of the lowest GDPs.