Probably inspired by El Salvador in the legalization of bitcion, the Central African Republic is shifting into high gear. So she decided to launch “Sango”, a project aimed at creating a crypto hub in Africa.
Sango, towards the same language for bitcoin (BTC)?
On April 21, the CAR National Assembly voted unanimously to legalize bitcoin. Also, don’t forget that until May 30, bitcoiners are passing through the country. Their goal: to technically support this historic initiative for the country and the whole of Africa.
President Faustin-Archange Touadéra, who is the brains behind this project, wants to take a new step. Last Tuesday, he announced another step that will refine the process. This is “Sango”, a project that provides for the development of the first African crypto hub. Its ultimate goal is to attract investors to the continent.
Here is his tweet regarding Sango:
” Following the unanimous adoption by the National Assembly of the legal currency status of #BTC, we are pleased to present the first concrete initiative to you! It goes beyond politics and administration and has the potential to reshape CAR’s financial system! #bitcoin. »
Enough to question the Central African economic philosophy. As a corollary, a new mode of economic governance supported by digital investments will emerge.
In a press release, Touadera said:
” We are going to take a new step with the launch of the Sango project, the most ambitious, innovative and surprising initiative destined to transform the economy. »
” This project intends to ‘build directly, in the heart of Africa, the first cryptocurrency investment center, recognized by a country’s parliament, which will host crypto businesses and attract crypto enthusiasts from all over the world. “, we comment in the presentation document of Sango.
Towards the establishment of a Crypto Island?
The “Crypto Island” (translation: “crypto island”) would be a remake of the “Bitcoin Beach” of El Salvador. Probably, the Central African Republic intends to round up bitcoiners via this infrastructure once established. Normally, it will take the form of a protected economic zone that will feature the metaverse and NFTs.
Alongside this crypto island, the Central African Republic will rely on a digital identity program validated by the government. It will also erect a “digital” national bank of its own.
Here, the objective is to give bitcoin a boost after its legalization throughout the territory. Therefore, the desire of the CAR to become the first country in Africa to put in place a legal framework conducive to cryptocurrencies will not remain a utopia.
” [Sango] can usher in a new economic era with enormous potential that neither Africa nor the rest of the world has imagined. My greatest wish is that this project be accessible to all, that it open up new paths, that it be a global example and that the benefits it will generate become vectors of economic performance for our country. “, adds the president mathematician Faustin-Archange Touadera.
What are the limits of Sango?
Already, there is an infrastructure problem that will cripple Sango. Sébastien Gouspillo, mining specialist and co-founder of Bigblock DC, remarked:
” The country does not necessarily have all the infrastructure to be able to succeed in this bet: there is not much electricity in this country, there is very little internet. How are we going to be able to develop bitcoin? There were doubts “.
The head of the delegation of bitcoiners who left for the CAR today added:
” We go there to listen and to try to bring some solutions to the country to help them so that it is not an obvious failure, but a success for the populations.. »
To do this, the government has provided for the development of a wallet accepting bitcoin, other cryptocurrencies and the CFA franc. Before completely solving the Internet access problem, Central Africans will use the telephone network. Rather than lamenting their fate.
To say that only 10% of the local population can currently access the Internet (Source: World Bank).
But another problem remains to be solved for the Central African executive. That of the IMF which did not fail to warn the leaders about this alternative. Because in his eyes, you should not see the BTC “ as a panacea against economic challenges for Africa.
Abebe Aermo Selassie, Director of the African Department at the IMF, criticized CAR’s legalization of bitcoin:
” Simply embracing the ability to use bitcoin is something that needs to be watched very, very carefully, to ensure that the legislative framework, financial transparency and governance are in place. »
Sango, initially a language spoken by more than one million Central Africans, is becoming a game-changing project in the CAR. But as this country has the particularity of being in the center of Africa, this new wind will blow in the 4 corners of the Continent. Farewell to centralization, neocolonial yoke and investment barriers when Mama Africa will wake up with bitcoin in the wallets.
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it