The Central African Republic Makes Bitcoin a Reserve Currency as It Prepares to Launch Sango
2022.07.19 00:18
The Central African Republic Makes Bitcoin a Reserve Currency as It Prepares to Launch Sango
In April, the Central African Republic (CAR) became the first country in Africa, and second in the world, to recognize bitcoin as legal tender. Now, the CAR government looks set to make Bitcoin an official reserve asset.
The CAR to Make Bitcoin a Reserve Asset
In a follow-up to its decision to legalize bitcoin, the Central African Republic has hinted at plans to leverage the world’s largest cryptocurrency as a reserve asset.
Installing bitcoin a reserve currency would mean that the CAR would hold the leading crypto along with other currencies and assets in a pool of resources for use in transfers and balancing international transactions and payments.
According to reports, the CAR national assembly passed the bill after Minister of Digital Economy Gourna Zacko, and Minister of Finance Calixte Nganongo developed the proposal.
The CAR Prepares to Launch Sango
An email sent to pre-registered investors revealed that the Central African Republic intends to launch the Sango Coin on July 21st. Sango will be the “national digital currency” of the CAR.
According to Sango Coin whitepaper, the crypto will tokenize the vast mineral resources of the Central African Republic. Sango will launch with a minimum investment of $500 to be paid in crypto, with available options for such investments including BTC and ETH.
On the Flipside
- The pro-bitcoin stance of the CAR has raised questions among economic analysts, and the International Monetary Fund has issued the country a warning that the move could backfire.
Why You Should Care
The approval of bitcoin as a reserve currency is part of the Central African Republic’s plan to use crypto and blockchain technology as tools to bolster and transform its debilitated economy.
Find more info about the CAR’s plans for Bitcoin:
Central African Republic Relies on Bitcoin to Build the Country’s Future
The World Bank rejected the CAR’s plan. Learn more in:
World Bank Rejects Central African Republic’s Bitcoin Island Plan
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