Congo’s Crypto Ambitions: A Glimpse into the Future
In a groundbreaking move, the Central African Republic (CAR) has launched its Sango project, aiming to transform its economy through blockchain technology. Amidst a decline in the crypto industry, CAR is betting on this innovative initiative to revitalize its economy and attract foreign investment.
A Comprehensive Platform
The Sango platform offers a range of services, including:
- Citizenship
- E-residency
- Company registration
- Land purchases
All these services are available through the equivalent Sango coin. The allocation schedule for the token is as follows:
- 20% held by the country’s treasury
- 10% each for foundation funds, rewards and incentives, liquidity, market coins, and various offerings
Tokenization of Natural Resources
The project plans to tokenize CAR’s abundant natural resources, including:
- Gold
- Diamonds
- Iron ore
- Graphite
- Uranium
- Limestone
- Copper
- Cobalt
This move is expected to attract foreign investment and create new revenue streams for the country.
Real Estate Development
A ‘Crypto City’ will be developed on the ‘Crypto Island’, located in the capital Bangui, as a special economic zone. The city will become a hub for cryptocurrency-related businesses and activities.
Institutional Setup
The government has established a ‘crypto hub’ to spearhead digitization projects. Oversight responsibilities are assigned to:
- Agence Nationale de Régulation de Transaction Électronique (ANTE)
- Creation of a ‘digital national bank’, Banque Nationale Digitale de la République Centrafricaine (BNDRC)
Tax Advantages
Crypto transactions will be exempt from tax, with no income or corporate tax. Tax payments will be performed through Sango.
Crowdfunding Platform
Investors will have access to government infrastructure projects through a crowdfunding platform on the Sango platform.
Governance Features
- Investors can vote on the future development of the Sango ecosystem
Uncertainties Surrounding Sango Coin
The concept for Sango coin is complex and has an untested design, blending features of private and public digital money. The legal treatment of Sango Coin is also unclear, with questions surrounding its classification as a debt or liability of the State.
Roadmap to Improving Current Projects
The project’s design aspects have been criticized for their complexity and ambiguity. The roadmap for improving current projects is uncertain, with many questions surrounding the valuation of the Sango coin and its potential impact on CAR’s economy.
As the crypto landscape continues to evolve, the success of the Sango project will be closely watched by investors and policymakers alike. Will CAR’s bold initiative pay off, or will it falter in the face of uncertainty and skepticism? Only time will tell.