Read Time: 2 minutes
Central African Republic (CAR), the first African country to adopt Bitcoin as a legal tender has launched an indigenous cryptocurrency which is called “Sango Coin.” The latest development comes amid months of instability in the crypto market, aversion from various financial bodies to the country’s adoption of Bitcoin as a legal tender, macroeconomic difficulties, etc.
The Central African Republic describes the “Sango Coin” as a “national digital currency.” The African country says it will start selling the cryptocurrency which it forecasts will be worth $21 million by next week. The national digital currency will go on sale on the 21st of July with a minimum investment of $500 to be paid in cryptocurrencies such as Bitcoin (which is a legal tender in the country) and Ethereum, the country’s Sango investment website says.
When the Central African Republic announced its adoption of Bitcoin as a legal tender, there were various concerns including that the country wasn’t ready, poor access to the internet and electricity, the feasibility of the use of Bitcoin, etc. Now that it has launched what it calls a national digital currency, these concerns have aggravated. Crypto experts and international bodies are worried about the string of decisions the country has been making in regard to digital currencies.
The major concerns of experts and bodies such as the International Monetary Fund surround the latest events with the crypto market and the volatility of cryptocurrencies. Even with all of these apparent reasons to step away from digital currencies, like Central American country El Salvador, the Central African Republic’s interest in cryptocurrencies continues to grow.
While speaking at the recent launch event for crypto initiative Sango hosted by the country, Central African Republic’s President Faustin-Archange Touadera said that cryptocurrencies are the solution to solving the challenges with regard to widening the financial inclusion gap. He said this while citing the cost of opening bank accounts. “The alternative to cash is cryptocurrency. For us, a formal economy is no longer an option,” he said.
“Sango Coin will be the currency of the new generation of the Central African Republic,” the country’s President also said during the launch.