As the first country to adopt Bitcoin as legal tender in Africa, the Central African Republic appears to be struggling with its investor-oriented token, Sango Coin.
The Central African Republic has announced it will delay the listing of cryptocurrency, Sango Coin, on crypto exchanges due to current market conditions and marketing reasons. The update was revealed in Sango’s Telegram group.
Sango Coin was launched in July with the aim of raising nearly $1 billion over the next year. So far, however, only $1.66 million worth of the coin has been sold, according to the Sango website.
In April of this year, the Central African Republic made Bitcoin (BTC) legal tender, becoming the first African state to do so. The country had also previously announced a plan to allow foreign investors to buy citizenship for $60,000 worth of Sango Coins. However, this initiative was blocked as unconstitutional by the country’s top court in August.
Cointelegraph recently sat down with Mamadou Moustapha Ly, the Central African technician who oversaw the development of Sango Coin while attending a conference in Senegal, West Africa. A payments expert, Ly also runs the Fintech startup Kete Cash. Ly shed light on the creation of what he called a “token–not a currency,” labeled Sango. Sango is the token that would accompany the country’s plans to adopt Bitcoin as a legal tender.
First, Ly stressed that the Bitcoin as legal tender law clearly states that the country will adopt Bitcoin: There is no mention of other cryptocurrencies or even Sango Coin. He painted a clear divide between Sango and Bitcoin:
“The law states that the digital currency that is legal tender is bitcoin. We recognize this as our official currency. […] Sango coin is a project for the Central African Republic state.”
His comments are backed by the President of the CAR, Faustin-Archange Touadéra. The mathematician has been vocal in his support of Bitcoin, and Bitcoin only. However, the President showed solidarity with the creation of the Sango token, as the country would move toward a “Brighter Future” via blockchain technology.
With #Bitcoin as #legaltender & inspiration, our country opens a new chapter in its inspiring journey towards a brighter future via #blockchain #tech.
Everyone is welcome to witness the Sango Genesis Event that will be broadcast on the 3rd of July, on https://t.co/LIQiKGhcBS. pic.twitter.com/7u6knv5f6w
— Faustin-Archange Touadéra (@FA_Touadera) June 27, 2022
Sango Coin offers attractive incentives to foreign investors, including citizenship by investment and, eventually, a CAR passport, as well as governance advantages. In a way, it is comparable to El Salvador’s Bitcoin or volcano bonds, as the coin offers a fast-track foreign investment service.
Despite the challenges faced by the Central African Republic and the Sango Coin, it is important to note that the country’s adoption of Bitcoin as legal tender is a significant milestone in the widespread acceptance of the world’s largest crypto.
Cointelegraph has reached out to specialists on the ground in the CAR and will update the article when there’s new info available.