World Bank Rejects Central African Republic’s Bitcoin Island Plan

The World Bank claims the $35 million grant to Central African Republic is not related to the upcoming crypto hub project.

Recently, the Central African Republic became the second country in the world to adopt Bitcoin as legal tender. Soon after, the country announced plans to build a crypto hub called “Sango” on an island, taking further inspiration from El Salvador’s example. However, the World Bank strongly opposes the nation’s strategy.

Living the Crypto Dream in Sango

Just last week, CAR’s President Faustin Archange Touadera expressed his profound love for crypto, saying “an impenetrable bureaucracy is keeping us stuck in systems that do not give [emerging economies] a chance to be competitive”.

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The proposal for the Sango crypto hub presents some ambitious ideas for attracting crypto enthusiasts and investors. Benefits and incentives to get involved with Sango include e-residency passports that can be acquired through investment, tax-free zones, and zero percent charges for cryptocurrency exchanges. Crowdfunding for the infrastructure and other local projects is in the works for crypto firms looking to take up residence in the crypto hub, but they will first have to join a waiting list.

$35 Million Worth of Confusion

The official site of the Sango crypto hub states that “The Central African Republic received approval for a $35 million fund from the World Bank for the digitalization of the public sector”. However, it now seems that the World Bank wants nothing to do with the ongoing crypto project, responding to the statement with the disclaimer: ‘The World Bank is not supporting ‘Sango: The First Crypto Initiative Project’, nor any other crypto initiatives”. Allegedly, the approved money the CAR spoke of was intended to be used for the digitization of salary payments and tax collection systems.

On the Flipside

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
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.