• Asset tokenization has been in the works for a year in the Central African Republic (CAR)
• The ambitious project includes investor citizenship and an island in the metaverse
• On July 24, the CAR National Assembly passed a law on tokenizing land and natural resources
The Sango Project in the Central African Republic
The Central African Republic (CAR) has been at the forefront of crypto innovation, pushing forward an ambitious project to tokenize its land and natural resources. This is part of the larger Sango project which was launched in May 2022. It includes investor citizenship and an island in the metaverse. On July 24th, 2020, the CAR National Assembly passed a law that will make it possible to obtain business visas online, as well as allow citizens and foreigners to set up businesses “easily”.
The Crypto Island Metaverse
The Sango project also called for the creation of its own Crypto Island metaverse. In April 2022, CAR became the first country in Africa, and second country worldwide, to adopt Bitcoin (BTC) as a national currency . However, this status was reportedly repealed in May of this year. The country then launched its own cryptocurrency ,the Sango, which was not intended to be a central bank digital currency. Unfortunately, there have been significant obstacles facing this project; including rejection of their linked citizenship program by Constitutional Court . Despite these issues , they are still offering their citizenship program on their website for $60 000 worth of Sango tokens.
Commodity Tokenization is Africa’s Economic Aid
Tokenizing land and natural resources could provide economic aid to many countries across Africa who desperately need it . Commodity tokenization offers numerous advantages such as fractional ownership , portfolio diversification , liquidity , traceability ,and transparency . These factors could lead to more efficient capital allocation and asset management within African nations.
International Monetary Fund’s Response
The International Monetary Fund (IMF), which had initially opposed CAR’s adoption of Bitcoin, estimates that it’s gross domestic product growth will be 2.2% this year . This shows that despite initial hesitation from international organizations like IMF there is hope that these projects can have a positive effect on struggling economies like those found throughout Africa.
An Exciting Future For Crypto Adoption
Despite some initial setbacks faced by CAR with their ambitious crypto innovations, they have remained determined to position themselves at the vanguard of crypto adoption . With laws now being passed allowing for tokenization of land and natural resources there is exciting potential for what possibilities may come next!