The use of bitcoin as legal cash in the Central African Republic has been a contentious issue. The country now intends to establish the 'Sango' cryptocurrency economic zone.
Applause, praises, and a lot of criticism have greeted the Central African Republic's introduction of bitcoin as legal cash. Despite the criticism, the local administration is pressing forward with plans to offer inhabitants with a digital currency infrastructure.
On May 24, CAR President Faustin-Archange Touadera went to Twitter to announce the start of "Sango," the country's first major crypto endeavor, with aspirations to lure worldwide crypto aficionados.
Attracting Cryptophiles from Around the World
Soon after the National Assembly overwhelmingly legalized Bitcoin as legal cash, Touadera announced ambitions to become the CAR's crypto center. With Touadéra's help, the CAR National Assembly launched the Sango crypto-centric program.
Sango intends to 'pave the path to a digital future of unlimited possibilities,' according to a 24-page paper outlining the project's ambitions. Touadéra announced his support for Sango in a tweet, stating the initiative had the "potential to change CAR's financial system."
The letter also detailed CAR's objectives, which included 'facilitating bitcoin property purchase for investors globally' and the establishment of a Digital National Bank. The local administration also said in the statement that access to its natural resources, including as gold, diamonds, uranium, lithium, and oil, would be "completely supported."
Sango will include an island known as "the crypto island," which will be the "first island in the metaverse supported by a genuine island."
Sango's legal framework will feature an e-residency program, citizenship by investment, online company registration, and no income or corporation tax, according to the paper. CAR now expects to create this specialized legislative framework before the end of the year.
The paper also discusses the creation of a Lightning Network-compatible bitcoin wallet for sending, receiving, and storing BTC. The Lightning Network is bitcoin's second-layer technology for making payments more affordable and quicker.
The Central African Backbone (CAB) internet connectivity will be completed by the end of the year, allowing CAR to fuel its "entire digital revolution." Users will be able to propose, observe, and participate to the crypto hub's future developments in the country's 'cryptocurrency economic zone.'
Is CAR Perplexing the Cryptoverse?
While many people applauded CAR's decision to recognize Bitcoin as legal cash, authorities and financial experts throughout the world were critical. The Central African Republic's adoption of bitcoin, according to the International Monetary Fund, might be concerning and pose a number of issues for the country and the region.
Many investigations also indicated that the government accepted BTC as legal cash without contacting the regional central bank, which oversees a six-country common currency, including the Central African Republic.
Notably, the country is one of the poorest in the world, and it is the second after El Salvador to embrace the BTC. Opposition parties criticized Touadéra's decision as well.
Sango wants to take 'the Bitcoin heritage to the next level,' thus CAR hopes to build a center to lure cryptocurrency entrepreneurs and aficionados to the country. According to World Bank statistics, the Sango hub announcement is intended to attract international investors to the country, most likely in an effort to help the country grow further.
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