Central African Republic’s Digital Currency: Sango Coin
The Central African Republic (CAR) has announced plans for a digital currency called Sango coin. This article summarizes the key points and features of the Sango coin project.
Market Coins
Market Capitalization
- The market capitalization of the CAR is represented as 20% by Sango coins.
- Genesis Cycle - Cycle 12: $500
- Land Offering: 10% of market capitalization, with a 10-year locking period.
- Citizenship Offering: 10% of market capitalization, with a 5-year locking period.
- e-Residence Offering: 10% of market capitalization, with a 3-year locking period.
Central African Republic (CAR)
Tokenization and Development
- Tokenization of the country’s natural resources will be available on the Sango platform in the future.
- Real estate development on “Crypto Island” in Bangui, operated as a special economic zone.
- Institutional setup: a “crypto hub” to oversee digitization projects and create a digital national bank (Banque Nationale Digitale de la République Centrafricaine).
Roadmap to Improving Current Projects
Design Aspects of Sango Coin
- Unclassifiable, blending features of private and public digital money.
- Not a CBDC, as it’s not a digital liability of the central bank.
- Not a stablecoin, due to high volatility of Bitcoin backing.
- Classified as virtual assets under FATF definition.
- Complex design with substantial ambiguities.
Legal Treatment of Sango Coin
Unclear Status and Fiscal Risks
- Unclear from the crypto law whether Sango Coin is issued by the State or another entity.
- Important fiscal risks under consideration:
- Explicit guarantee by the State (if so, reflected in CAR’s fiscal and financial reports).
- Future revenue streams on natural resources pledged for Sango coin issuance.
- Implicit guarantees by the State.
Design of Sango Coin
Two-Way Peg Mechanism
- Creates uncertainty regarding its valuation due to high volatility of Bitcoin backing.
- Two-way peg mechanism enabling conversion from Sango to Bitcoin and vice versa.