Central African Republic to create a crypto legal framework

The bill will help to create a friendly business environment, says President Touadera.

Central African Republic to create a crypto legal framework
by Ifeoluwa Awowoye, exclusively for Mariblock

In April 2022, the Central African Republic (CAR) became the first African country, and the second globally, to adopt bitcoin as a legal tender. But the decree did not come with a law to regulate its use. That is about to change, with the CAR government now working on a bill to regulate the use of cryptocurrencies and the tokenization of its natural resources.

This comes roughly five months after the country’s Constitutional Court ruled Sango coin illegal.

The details

  • In a press release written in French (Google-translated), President Faustin-Archange Touadera explained that the decision to legalize cryptocurrencies was aimed at developing CAR’s economy by strengthening its place in the international finance sector.
  • The government has set up a committee of 15 experts from five ministries.
  • These include the Ministry of Mines and Geology; Ministry of Waters, Forests, Hunting and Fishing; Ministry of Agriculture and Rural Development; Ministry of Urban Planning, Land Reform, City and Housing; and the Ministry of Justice, Promotion of Human Rights and Good Governance.

What was said

  • The press release reads:
“With access to cryptocurrencies, the monetary barriers existing until now will disappear, [which is] the main objective of the measures adopted by the government [toward] the development of the national economy.”

Why these matters

  • The country, whose diamond and gold reserves are self-valued at $285 billion and $60 billion, respectively, suffers from illegal mining and export activities. This undermines the government’s ability to generate revenue.
  • Following the adoption of bitcoin as legal tender, the Touader-led government of the CAR announced the launch of its official crypto hub, dubbed “Sango,” through which it intends to tokenize access to its natural resources reserves.
  • It remains unclear how Touadera aims to achieve economic growth with cryptocurrency adoption, not least because a significant part of the Central Africa Republic’s economic challenges is war-induced.

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