Cryptocurrencies are the solution to tackling financial
exclusion in the Central African Republic, its President Faustin-Archange
Touadera said on Sunday, citing the cost of opening bank accounts.
"The alternative to cash is a cryptocurrency," Touadera said at a
launch event for crypto initiative Sango hosted by the country after it became
the first African state to make bitcoin legal tender in April. "For us, a
formal economy is no longer an option." read more
The move to adopt cryptocurrencies in a country where internet use is low and
electricity unreliable has raised eyebrows among crypto experts, puzzled
lawmakers and residents, and drawn words of caution from the International
Monetary Fund.
The Sango project, including a "Sango Coin", was backed by the
Central African Republic's National Assembly and spearheaded by Touadera, who
said the token would provide access to the country's "mountain" of
natural resources, including gold and diamonds.
The country's "Sango" website says that it will "facilitate the
tokenization of Central African Republic's resources for worldwide
investors".
"Sango Coin will be the currency of the new generation of the Central
African Republic," Touadera said, without providing specifics.
The Central African Republic's enthusiasm for cryptocurrencies does not seem to
have been dented by recent losses in their values, with the price of bitcoin
falling over 58% in the past three months, according to Refinitiv data.
Source: Reuters