The Central African Republic Makes Bitcoin a Reserve Currency as It Prepares to Launch Sango

In April, the CAR became the first African government and second in the world to recognize bitcoin as legal cash.

In April, the Central African Republic (CAR) became the first country in Africa, and second in the world, to recognize bitcoin as legal tender. Now, the CAR government looks set to make Bitcoin an official reserve asset. 

The CAR to Make Bitcoin a Reserve Asset 

In a follow-up to its decision to legalize bitcoin, the Central African Republic has hinted at plans to leverage the world’s largest cryptocurrency as a reserve asset. 

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Installing bitcoin a reserve currency would mean that the CAR would hold the leading crypto along with other currencies and assets in a pool of resources for use in transfers and balancing international transactions and payments.

According to reports, the CAR national assembly passed the bill after Minister of Digital Economy Gourna Zacko, and Minister of Finance Calixte Nganongo developed the proposal.

The CAR Prepares to Launch Sango

An email sent to pre-registered investors revealed that the Central African Republic intends to launch the Sango Coin on July 21st. Sango will be the “national digital currency” of the CAR. 

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According to Sango Coin whitepaper, the crypto will tokenize the vast mineral resources of the Central African Republic. Sango will launch with a minimum investment of $500 to be paid in crypto, with available options for such investments including BTC and ETH.

On the Flipside

  • The pro-bitcoin stance of the CAR has raised questions among economic analysts, and the International Monetary Fund has issued the country a warning that the move could backfire. 

Why You Should Care

The approval of bitcoin as a reserve currency is part of the Central African Republic’s plan to use crypto and blockchain technology as tools to bolster and transform its debilitated economy.

Find more info about the CAR’s plans for Bitcoin: 

Central African Republic Relies on Bitcoin to Build the Country’s Future

The World Bank rejected the CAR’s plan. Learn more in:

World Bank Rejects Central African Republic’s Bitcoin Island Plan

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia