Monday, July 11, 2022

Central African Republic launches "Sango" cryptocurrency hub

The Central African Republic is launching the cryptocurrency hub "Sango" aimed at promoting innovation and attracting businesses.

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The official Sango documentation states that the government will create a dedicated legal framework for cryptocurrencies by the end of the year.

The site also posted a link to a video describing the SANGO Coin genesis event. The video describes the asset as "the birth of a new digital monetary system."

Among Sango's features are:

  • Electronic Residency Program.
  • Citizenship Program.
  • Tokenization of natural resources.
  •  "The only metaverse backed by reality."

It is unclear what exactly that last feature entails, but the Central African Republic has made it known that it is interested in the metaverse.

The Sango cryptocurrency hub was first announced in May, with the government saying it would encourage innovation. The hub will be based on an island called Sango, and residents will not be subject to corporate or income taxes.

Like Malta's blockchain island, the Touadéra administration hopes these amenities will attract business and entrepreneurship. 

Central African Republic bets on cryptocurrencies and blockchain

The Central African Republic has been in the media spotlight in recent months as the country turns to cryptocurrencies to boost its economy. The country recently made Bitcoin legal tender, joining El Salvador in doing so.

Obviously, the decision to make Bitcoin legal tender was met with criticism and disapproval from global organizations, including the International Monetary Fund (IMF).

These authorities consider that the cryptocurrency market has many risks and that legalizing cryptocurrencies could create macroeconomic and legal risks.

Other countries will closely monitor how cryptocurrencies can benefit their economies. The Central African Republic is perhaps an extreme case of countries adopting cryptocurrencies and may face some bumps along the way.

But developing countries want to leverage technology to drive digitalization.


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