President Faustin Archange-Touadera is facing yet another setback in the country’s ambitious Sango project plans. On Monday, the Central African Republic’s Constitutional Court deemed the Sango Project’s initiative to sell e-residency, lands, and citizenship via the freshly launched Sango Coin to be unconstitutional.
Central African Republic's top court ruled that selling land, citizenship & "e-residency" for its digital currency Sango Coin is unconstitutional.— Rachel Savage (@rachelmsavage) August 30, 2022
A govt spokesman had no response yday & it is not clear what the impact is on its ambitious crypto projecthttps://t.co/E5qOOPxVGZ
Sango Crypto Island Struggles to Take Off
The course of building the new Africa is quite demanding, especially in a country that lacks infrastructure and is still searching for peace. However, the foreign investors participating in the Sango Project can get citizenship for $60,000 worth of crypto. The equivalent of the amount is held as collateral in the country’s native Sango Coin. The frozen funds are released in five years.
Moreover, Sango participants can buy an e-residency just for $6,000 in cryptocurrency. As for those looking to buy land in Central Africa’s ambitious crypto hub, a 250-square meter piece of land would cost $10,000 in crypto, while the equivalent of the sum in Sango Coin would be returned after a decade.
Ultimately, the target sale of $21 million has not been met by a long shot. The Sango Project sold about 5% of the target in the first days after launch. Therefore, the Sango Genesis Cycle had to be extended for at least 5 weeks. The Central African High Court argues that citizenship doesn’t have a monetary value, and besides, the e-residency requires a physical stay, according to CAR’s constitution.
$1M Prize Pool for Africa’s Evolution
Besides, buying land or e-residency is not the only way to get into the action of Central African Republic’s crypto hub. While the Sango Island is still in the works, the project offers a contest to any active members. First, the Sango contest requires a person to register on the Sango platform and complete social tasks. Secondly, the participant has to have a minimum of $100 invested in Sango. After the requirements are met, there’s $80,000 in Sango Coins up for grabs.
Becoming a resident of the Central African Republic gives you many benefits, including taxless #crypto operations. The #Sango Contest will reward you with e-Residency, SANGO Coins, Citizenship and Land. Check out https://t.co/K2BQgM0MkG for more details. pic.twitter.com/itw8hprfrO— Sango (@sangoproject) August 21, 2022
However, the most valuable prize in the pool is citizenship, which comes with its own perks for crypto enthusiasts: the 0% income tax on cryptocurrencies, a VIP pass to the upcoming digital infrastructure, and even online company registration.
Moreover, remote asset management through the Sango App could let businesses run smoothly without actually being in the country. This can be seen as a significant innovation for both Africa and crypto in general. In spite of that, the Central African Court argues the remote approach is unconstitutional.
Binance CEO CZ Meets with President Touadera
Big plans require courage, especially if met with intense backlash. The Sango Project was frowned upon by the International Monetary Fund (IMF) and the World Bank. President Touadera didn’t take much from the IMF’s recommendations and went on to declare Bitcoin (BTC) a legal tender.
Becoming only the second country in the world to do so, following El Salvador, the war-torn country of CAR needed backing from renowned names of the crypto world. That’s when Changpeng Zhao, the CEO of Binance, stepped in to lend a helping hand.
On the Flipside
- CAR’s President Touadera has been following in the footsteps of El Salvador. The Latin American state became the first country in the world to adopt Bitcoin (BTC) as legal tender. Despite suffering a slow start in a similar manner, El Salvador has benefited from the move, especially in the tourism sector.
Why You Should Care
Sango is a first-of-its-kind project that aims to digitalize the Central African Republic by bringing crypto talent. The Sango Project has a bi-dimensional approach, with the physical crypto island being built these days, while letting investors manage their assets remotely in-app. The unprecedented project has vague legal framework, and the outcome of the misunderstanding between the President’s office and the High Court of CAR might be a turning point for the pioneering crypto hub.
Find out more about CAR’s decision to make Bitcoin (BTC) legal tender