On July 3rd, the Sango project will be launched: a combination of initiatives that will focus on making the Central African Republic the hub for Bitcoin and the services that will grow up around it. It’s an ambitious project, but perhaps not exactly the best time to introduce Bitcoin as a legal tender currency—we’ve already talked about this in a recent article.
It’s definitely an interesting initiative, also because it’s organized by a very poor state with a lot of potential for growth. Though there have been criticisms about the project, a lot is going on and some of it may change the fate of the country.
The Central African Republic made headlines when it adopted Bitcoin as legal tender, making it the first country in Africa to do so and the second in the world after El Salvador.
With #Bitcoin as #legaltender & inspiration, our country opens a new chapter in its inspiring journey towards a brighter future via #blockchain #tech.— Faustin-Archange Touadéra (@FA_Touadera) June 27, 2022
Everyone is welcome to witness the Sango Genesis Event that will be broadcast on the 3rd of July, on https://t.co/LIQiKGhcBS. pic.twitter.com/7u6knv5f6w
An exponential rise in Bitcoin will help the CAR become a hub for the digital future in Central Africa. This is a crypto initiative that could provide a host of opportunities throughout its development and also pave the way for future growth. Let’s try to analyze the situation.
First, the location will be crucial since it will be in the middle of that core group of countries that are relying on two different versions of the former Colonial Franc. Geopolitically speaking, this could be a breakthrough for those countries. However, this change could also take time to truly come through.
Secondly, it is the first one to be recognized by a parliament. This is a significant move, as it creates a legal framework that gives maximum security to businesses that move to the country.
Third, the so-called Crypto Island will be declared a “Crypto Economic Zone” and it will allow users to propose, view, and contribute to the future developments of Sango. Sango will be the first island in the Metaverse that is backed by reality.
Lastly, digital identity and the possibility of opening businesses remotely will make it possible to get citizenship above a certain kind of investment.
In order to promote Bitcoin adoption in the Central African Republic, a Bitcoin Delegation recommended a clear and attractive tax system, as well as reducing the tax on smartphones.
This will also be a unique measure. In the following phase, it will have to be evaluated in relation to the banking services provided by the country, personal and financial security, and other factors that influence whether companies choose to move elsewhere or not.
This initiative will also entail the possibility of tokenizing the country’s natural resources. We expect more details on July 3rd at the Sango Genesis Event, which the president has described as the most revolutionary conference in the history of blockchain technology and Web 3.
Of course, there are many other factors that should be taken into consideration to be able to accurately consider the possibility of success of such an ambitious plan. It’s going to be difficult for the Central African Republic to become a worldwide hub, as the country is extremely poor and lacks the support of an evolved banking system and also the diffusion of the Internet among the population. Overcoming those hurdles will likely be the hardest part of this project.
It also seems the Central African Republic sidestepped both its regional Central Bank and the World Bank in adopting Bitcoin. The World Bank has confirmed that it will not support the Sango project with its investments, though it has offered a $35 million loan to help “digitize” CAR’s public sector. The next months will be crucial to understanding how successful this experiment will be.