The Central African Republic, a landlocked country in Central Africa has recently passed a law that allows foreign investment in cryptocurrencies after it adopted Bitcoin as a legal tender last year.
Announcing the passage of this law, the CAR government said,
“The new law for the tokenization of natural resources sets down the framework for using Bitcoin and the country’s virtual currency, Sango, in the investment process. This includes foreign nationals wishing to invest in mining, agricultural, and forestry assets.
“Investors have the right to transfer abroad all annual profits accruing to them after payment of taxes, duties, and other obligations”.
Investors King understands that CAR is the first country in Africa to adopt Bitcoin as a legal tender, and the second in the world after El Salvador.
This decision has however put the country at odds with the Bank of Central African States (BEAC), the regional central bank that serves the Economic and Monetary Community of Central Africa (CEMAC), which the Central African Republic is a member of and violates the CEMAC Treaty.
President of Central African Republic Faustin-Archange Touadéra disclosed that the country’s crypto coin ‘Sango Coin’, which was launched in July last year, will be the next-generation currency for the country and will be a gateway to the country’s natural resources.
He said that Sango Coin is part of the CAR’s vision to have an integrated capital market that could stimulate commerce and sustain growth. He talked about the need for financial inclusion and the need for the country’s citizens to easily have access to cryptocurrencies via smartphones.
Explaining the project’s benefits, he stated that the citizens will gain at every level, as they will live in a country in full economic development, which means employment and prosperity.
Moreover, they will benefit from virtual transactions, which in contrast to traditional banking, have the advantage of rapid access, fast execution, lack of bureaucracy, and low cost. For us, a formal economy is no longer an option.”