Central African Republic (CAR), the second country in the world to make BTC legal tender, plans to deepen its adoption of blockchain technology. Faustin-Archange Touadera, the country’s president, has introduced a new initiative to tokenize the country’s resources.
In a tweet, Touadera stated that the democratization and tokenization of the country’s resources have “tremendous possibilities.” These include opening the country to foreign investors. An attached official statement signed by the Minister of State and cabinet chief of staff Obed Namsio read: “We are giving everyone access to the riches of our land. In other words, we are transforming them into equally valuable and important digital assets through an unprecedented new administrative and economic movement.”
The statement added that the president had directed the country’s parliament to work on a regulatory framework and strategies to create these investment opportunities.
The next step for us, the Central African Republic is the democratization & tokenization of resources, a new chapter with tremendous possibilities.
— Faustin-Archange Touadéra (@FA_Touadera) June 2, 2022
Despite being wartorn with a largely poor population, the Central African Republic is known to be rich in natural resources, including timber and diamonds. Tokenization will essentially allow for the rights and benefits of these real-world resources to be represented on-chain.
CAR first hinted at plans to introduce tokenization last month when it unveiled Project Sango. Sango is billed to be a “crypto island” and the first digital assets hub in Africa.
In this hub, digital assets firms and investors are not required to pay corporate tax and will be offered citizenship by investment, digital ownership and identity, online business registration, and an e-residency program.
Criticisms of CAR’s digital currency adoption rage on
More observers continue to cast doubts on the feasibility of CAR’s adoption of BTC as legal tender. One of the country’s first critics was the International Monetary Fund (IMF).
The IMF stated that the move is doomed to fail. This is because of the legal, transparency, and economic policy challenges it raised. Instead, the body advised a rollback of the legislation and exploration of other avenues to turn around the economy.
Similarly, the World Bank has denied connections to the CAR’s plans to adopt Bitcoin as legal tender. The body, which was named as one of the founders of Project Sango, stated that its deal with CAR did not relate to the digital currency hub plans.
A Financial Times opinion piece maintains that the only possible benefit of CAR’s adoption of Bitcoin as legal tender is to dislodge the CFA Franc, a currency bequeathed to the country by France. However, it pointed out that CAR would be better off focusing on solving its numerous other challenges.
Watch: The BSV Global Blockchain Convention panel, Blockchain in Africa
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