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CAR has developed the Sango token and sidechain initiative to complement and facilitate crypto adoption nationally.
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The advent of Sango was followed by initiatives such as natural resource tokenisation.
The introduction of Bitcoin in CAR has been met with fierce resistance from the IMF and the Bank of Central African States.
The Central African Republic (CAR) intends to use Bitcoin as a reserve asset as part of its attempts to embrace cryptocurrencies and blockchain technology as instruments to improve its ailing economy.
According to statistics from a trading perspective, Bitcoin trades over $21,000 at press time.
" alt=""Bitcoin (BTC) Daily Chart. Source: TradingView
The Central African Republic’s move to include the leading cryptocurrency in its national reserves follows a programme that legalises Bitcoin in the country. The country became the first in Africa to recognise Bitcoin as legal cash in April.
💥Central African Republic will hold #Bitcoin as a reserve asset. pic.twitter.com/LShAzXd8Qu
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) July 17, 2022
Two politicians, Minister of digital economy Gourna Zacko and Minister of Finance Calixte Nganongo drafted the plan, which the national parliament approved. Officials voiced support for the programme, and the Senate passed the measure unanimously.
CAR followed its Bitcoin legalisation law with the Sango project, a blockchain-based platform to facilitate crypto acceptance in the country. Sango is a Bitcoin sidechain constructed similarly to the Liquid Network.
Sango is scheduled to begin on July 25 and is anticipated to operate as a layer 2 digital monetary system.
Financial Regulators Opposed Bitcoin Adoption In CAR While BTC adoption in the Central African Republic’s Senate won support, the move has prompted criticism from external entities who feel the decision might imperil rather than preserve the nation’s economic stability.
Like El Salvador, the International Monetary Fund expressed concern and recommended that the Central African Republic seek an alternative course of action. The Bank of Central African States, a financial behemoth that serves six countries, including the CAR, was likewise opposed to the widespread use of Bitcoin.