Central African Republic Advances Resource Tokenization
The Central African Republic (CAR) is taking bold steps towards tokenizing its vast natural resources. In a recent move, the Sango project team unveiled an initiative they believe will usher in a “new era of financial empowerment through blockchain technology.” The CAR’s legislative body has given the green light for the tokenization of land and natural resources, aiming to position the nation as a prime business destination within Africa.
The groundbreaking Tokenisation Law, unanimously approved, paves the way for a business-friendly environment. Entrepreneurs, both local and international, will flourish through the #Sango platform's blockchain integration, spanning real estate, agriculture, and natural resources.
— Sango (@sangoproject) August 21, 2023
Tokenization Law and Streamlined Procedures
The law not only paves the way for resource tokenization but also introduces streamlined online procedures for business licenses and electronic visas, applicable to both domestic and international companies. Upon securing licenses, businesses can operate seamlessly on the Sango platform, harnessing blockchain’s capabilities, as explained by the Sango team. The Sango project, which began last year, was conceived with resource tokenization at its core. It seeks to enable investments in the CAR through Sango Coin, a state-issued token backed by Bitcoin on a distinct sidechain network that diverges from the concept of a Central Bank Digital Currency (CBDC).
However, challenges emerged early on. The CAR’s Constitutional Court deemed the utilization of Sango Coin for purchasing land and citizenship unconstitutional, leading to a setback shortly after the token’s Initial Coin Offering (ICO) commenced. The ICO itself didn’t garner substantial interest. Despite offering 200 million Sango Coins at $0.10 each during the genesis cycle, the government managed to sell less than 8 million coins to citizens.
CAR’s Bitcoin Acceptance
Notably, in April 2022, the CAR made international headlines by becoming the second country, following El Salvador, to accept Bitcoin as legal tender alongside the CFA Franc. Regrettably, this law was reversed approximately a year later.
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Despite these challenges, President Faustin-Archange Touadéra remains committed to the cryptocurrency landscape. Sango attributes the new law’s conception to the President’s unwavering support. This dedication to crypto reflects the spirit of leaders like El Salvador’s President Nayib Bukele, who faced external criticism for endorsing Bitcoin as legal tender in his country. El Salvador has since initiated Bitcoin education and mining programs, with prominent Bitcoin advocates joining the President’s advisory circle.
