The Central African Republic announces an ambitious cryptographic project that may never see the light

The Central African Republic made bitcoin an official currency in April. The country just announced a massive crypto initiative, the Sango Project.

Paving the way for a digital future of infinite possibilities “. The slogan of the Sango project could be reminiscent of that of any young digital company. But it is an extremely ambitious official project, led by the Central African government, and whose goal is to transform the country into a African cryptocurrency hub.

After the unanimous decision of the National Assembly to make bitcoin an official currency, we are happy to be able to present our first concrete initiative! tweeted the president of the Central African Republic, Faustin-Archange Touadéra, on May 24, 2022. ” It goes beyond politics and administration and has the power to transform the Central African financial system!

The country became the 2nd in the world to recognize bitcoin as an official currency in April 2022, but currently does not have the necessary infrastructure to allow its use: only 11.4% of its population is connected to the Internet. Despite the president’s enthusiasm, it is not certain that the Sango project will one day come out.

What is the Sango project?

The site dedicated to the Sango project is still quite mysterious, and you need to join the waiting list to have access to a PDF of several pages describing the project for more information. According to the document, the project has three objectives:

  • Create the first one African crypto hub “, Which would welcome companies and” cryptocurrency enthusiasts “,
  • Taking Bitcoin’s legacy to the next level “,
  • To build ” Sango, Crypto Island “.

The next phases of the project should take place ” by the end of 2022 “, according to the document. It therefore specifies that the Central African Republic must create a legal framework for all cryptocurrencies, a framework that should exist since the signing of the law that makes bitcoin an official currency. Supported by photos of futuristic-looking buildings. , the document explains that Sango will host a program of “ digital e-residence », That partner companies and entrepreneurs will have no taxes or fees to pay and that it will be possible for foreign investors to acquire Central African nationality.

The Sango cryptographic project is very ambitious // Source: Sango

The project should also allow the creation of the National Digital Bank of the Central African Republic. Above all, the state will fully support »Cryptocurrency projects wishing to establish themselves in the Central African Republic and is committed to providing access to the country’s many natural resources, such as gold, diamonds, uranium, iron ores, etc.

Since the government is the main owner of Centrafrique, the latter will facilitate the acquisition of land in bitcoin for investors around the world “, is also indicated. Finally, Sango Island will also be present in the metaverse and will allow companies to create NFTs.

Real project or vague hopes?

Reading the PDF doesn’t answer many questions. You never explain what taking the legacy of bitcoin to the next level Actually means, neither where this cryptographic island could be installed, nor how the infrastructures would be assembled, etc. We talk quickly about Central African Backbone, a fiber optic connection project, but it is never explained when or how it could allow people in the country to connect (so far only 11.4% of the population has access to the Internet).

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Will the Sango project really see the light? // Source: Sango

The Sango project is extremely ambitious, but it lacks a lot of concrete information on implementation plans. It is therefore difficult today to know if the project will really see the light of day. Other utopian cryptographic projects tried to start but ultimately failed. This is in particular the case of Akon City, a futuristic city project by singer Akon, or CryptoLand, whose goal was to create an island dedicated to bitcoin. The two projects, launched with great fanfare, have stalled since then.

Sango could suffer a similar fate and fall into oblivion, or simply be a vast scam attempt. But the cryptocurrency island project could also be used for geopolitical purposes. Many observers believe that Russia would use its influence in the Central African Republic to get bitcoin adopted as legal tender. The country is in fact very involved in the region: since 2020, Russian paramilitaries have been supporting the Central African president against the various rebel groups, and helping him to stay in power.

The fact that the Central African Republic, a friendly country, uses cryptocurrencies could help Russia escape the international sanctions it has suffered since the invasion of Ukraine. But with Sango, Russia could go further: the fact that the Central African Republic is committed to providing natural resources to cryptocurrency investors is no small feat. The country is indeed rich in diamonds, uranium and has oil reserves: promising access to these resources and land in exchange for bitcoin investments could very well make the Sango project an important geopolitical cog.

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