In a recent publication, the Central African Republic (CAR) regulators revealed plans to use blockchain technology to tokenize the country’s natural resources. The CAR regulators plan to enter a “new era of financial empowerment through blockchain technology” to tokenize natural resources.
In the report, the legislators stated that the tokenization efforts will focus more on CAR’s existing land and natural resources. The regulators admitted that tokenizing natural resources improves CAR’s attractiveness in Africa.
CAR Eyes for Natural Resource Tokenization
According to the report, policymakers in CAR have greenlighted the proposal to tokenize natural resources. The approval of the proposal encourages the regulators to streamline the licensing process for online businesses and other electronic visa applications.
In July 2022, the CAR launched the national digital currency, Sango Coin, to promote financial inclusivity and accelerate economic development. The CAR anticipated generating $1 billion from the Sango project, which will be utilized to foster economic growth.
During the Sango launch, the CAR regulators aimed to tokenize natural resources. It implies that crypto investors could secure land and mining facilities through cryptocurrency.
Addressing a local media outlet, the CAR president Faustin-Archange stated that the Sango coin will be used to tokenize natural resources, including gold and diamond. The president noted that the tokenization efforts aimed at improving the accessibility of CAR riches.
CAR Approves New Legislation
However, to tap the benefits of the Sango coin, the CAR regulators will require firms to obtain the necessary licensing. According to the report, regulated entities will be allowed to operate on the Sango platform more effortlessly and utilize blockchain technology in conducting specific business activities.
Months after the release of the Sango coin, the CAR policymakers ruled out that the tokenization of natural resources was unconstitutional. Even though the launching of the Sango coin failed to yield impressive results, the CAR continues to explore ways to improve crypto adoption in the region.
Last year, the CAR accepted Bitcoin as a legal tender ranking second after the crypto-friendly country El Salvador. Compared to other nations seeking to become a burgeoning crypto center, El Salvador, led by President Nayib Bukele, has invested in Bitcoin education and expanding crypto mining activities to outshine Central American countries. Also, President Bukele has supported the new talents in the crypto sector by creating employment opportunities.
However, the CAR acceptance of crypto payment was short-lived after the regulators agreed to amend the crypto regulations in March 2023. A statement issued by the Sango team revealed that over 200 million coins were available for sale at $0.10 at the beginning of the project. Due to uncertainties in the market, the CAR team lamented that only 8 million Sango coins were sold.
Despite the unimpressive report, CAR president plans to lead other policymakers to formulate regulations that supports the crypto industry’s growth.