More than a month has passed since the Central African Republic decided to make Bitcoin legal tender, and now it’s planning to launch the first Bitcoin investment platform. It’s more of a hub than a platform, but nevertheless, it’s an alternative to the current economic system in the country. The bureaucracy is too much for the current system to be efficient, but with the new investment hub, CAR is hoping to change it.
Called Project SANGO, it’s a hub that will go beyond politics and administration. It’s both a governance model and a medium for alternative digital investments. As the government puts it, the project has minimal risks while offering fantastic flexibility and versatility suited to the digital era and Bitcoin’s strengths.
No ETA Yet
There was no mention of a possible release date for Project SANGO. It was announced in a release published by the presidency on May 23, with many hoping it’ll go live soon. Interested investors are free to register on the waiting list. There’s a dedicated website for the project that will be updated non-stop.
The Central African Republic is the second least developed country in the world. In April, it became the first African country to adopt Bitcoin as legal tender and the second in the world after El Salvador to do the same. It was a move that was heavily criticized by other governments and the IMF, but one that the government considered necessary. In an economic sense, things aren’t great in CAR, and the government turned to Bitcoin as an alternative to the current economic system.
As president Faustin-Archange Touadera said on Monday, the formal economy is ‘no longer an option’. He further said that the ‘impenetrable bureaucracy’ is holding the country down and doesn’t give it a chance to be competitive. The move to Bitcoin as legal tender in the CAR was a bit strange since it’s a country where Internet use is low and electricity problems are common. It raised the eyebrows of many crypto experts, but the government firmly sticks to its decision.
A Good Investment?
It’s still too early to tell if CAR’s Bitcoin gambit will pay off. El Salvador is sticking to its decision and buying the dip whenever the opportunity arises. Bitcoin and cryptos have plunged in value in the past few months, with Bitcoin dropping about 40% in recent weeks. It’s not been a good start to the year for cryptos, which are obviously affected by common assets and the Ukraine war more than we thought.
The volatility is a big problem that might keep investors off CAR’s new investment hub. With values nowhere near stabilization, it could be a struggle to let the platform fly. The Central African Bank is further complicating matters, looking for an explanation and reminding the government of its cryptocurrencies ban. It was meant to ensure financial stability, but president Touadera certainly doesn’t care about it.
The good news is that Bitcoin is still poised to make a comeback this year, and if it does like we know it can, CAR will reap the rewards.