Central African Republic Considers Natural Resources Tokenization, Despite Removing Bitcoin as Legal Tender Earlier This Year
Central African Republic Considers Natural Resources Tokenization
Despite the underwhelming response to its native digital currency, Sango Coin, the Central African Republic (CAR) is embarking on a new initiative to tokenize its abundant natural resources.
The Sango project team, which aims to usher in a “financial empowerment era through blockchain technology,” revealed this action. The legislative body of the CAR has approved the tokenization of land and other natural resources, seeing this as a tactic to promote the country as an alluring commercial location within Africa.
In addition to streamlining online applications for business licenses and visas and facilitating the tokenization of resources, the legislation serves both domestic and foreign businesses. The Sango team claims that after receiving a license, companies may operate smoothly on the Sango platform and take advantage of the potential of the blockchain
Sango Coin was introduced last year with the intention of facilitating investment in the CAR through tokens backed by resources, utilizing a sidechain network supported by Bitcoin, but without forming a Central Bank Digital Currency (CBDC). Sango Coin, however, encountered difficulties since the CAR’s Constitutional Court ruled that utilizing the token to acquire citizenship and land was unconstitutional.
Despite offering 200 million Sango Coins during its initial offering at $0.10 each, the government managed to sell fewer than 8 million coins to citizens during the ICO.
Following El Salvador’s example, the CAR previously accepted Bitcoin as legal tender alongside the CFA Franc. Despite the fact that Bitcoin as legal tender was later reversed, President Faustin-Archange continues to be committed to the cryptocurrency industry, with Sango attributing the new tokenization law to his leadership.