The Central African Republic made bitcoin an official currency in April. The country has now just announced a massive crypto initiative, the Sango project.
” Paving the way to a digital future of endless 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 to you! 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 it. Internet.Despite the president’s enthusiasm, it is not certain that the Sango project will one day come out of the ground.
What is the Sango project?
The site dedicated to the Sango project is still quite mysterious, and you must subscribe to the waiting list in order to have access to a PDF of several pages detailing the project for more information. According to the document, the project has three objectives:
- Create the first african crypto hub “, which would welcome businesses and “ crypto enthusiasts »,
- ” Taking Bitcoin Legacy to the Next Level »,
- To build ” Sango, Crypto Island “.
The next stages of the project are supposed to take place “ before the end of 2022 “, according to the document. It is thus specified that the Central African Republic must create a legal framework for all crypto-currencies – a framework which is supposed to exist since the signing of the law making bitcoin an official currency. Backed by photos of futuristic-looking buildings, the document explains that Sango will host a program of “ e-residency digital », that partner companies and entrepreneurs will have neither taxes nor taxes to pay, and that it will be possible for foreign investors to acquire Central African nationality.
The project should also allow the creation of the National Digital Bank of the Central African Republic. Above all, the state will fully support » crypto projects wishing to settle in the Central African Republic, and is committed to providing access to the many natural resources of the country, such as gold, diamonds, uranium, iron ores, etc.
” As the government is the main owner of Centrafrique, the latter will facilitate the acquisition of land in bitcoin for investors from all over 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 does not answer many questions. It is never explained what taking bitcoin legacy to the next level » really means, neither where this crypto island could be installed, nor how the infrastructures would be mounted, etc. There is quick talk of the Central African Backbone, a fiber optic connection project, but it is never explained when or how it might allow people in the country to connect (so far, only 11.4% of the population has Internet access).
The Sango project is extremely ambitious, but it lacks a lot of concrete information on the implementation plans. It is therefore difficult today to know if the project will really see the light of day. Other utopian crypto projects have tried to get started, only to ultimately fail. This is particularly the case of Akon City, a futuristic city project by singer Akon, or CryptoLand, whose goal was to make an island dedicated to bitcoin. The two projects, launched with great fanfare, have since stalled.
Sango could experience a similar fate and fall into oblivion, or just be a huge scam attempt. But the crypto island project could also be used for geopolitical purposes. Many observers believe that Russia would have used its influence in the Central African Republic to have bitcoin adopted as legal tender. The country is indeed very involved in the region: since 2020, Russian paramilitaries have supported the Central African president against the various rebel groups, and helped him to stay in power.
The fact that the Central African Republic, a friendly country, uses cryptos, could possibly help Russia to escape the international sanctions it has suffered since its invasion of Ukraine. But with Sango, Russia could go further: the fact that the Central African Republic is committed to providing natural resources to crypto investors is not insignificant. 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 well make the Sango project an important geopolitical cog.