Despite its poverty and political instability, the Central African Republic (CAR) continues to attract global attention due to its unconventional approach to economic development. In 2022, as the first African country, CAR made a historic move by declaring Bitcoin as an official currency. At first glance, this decision seemed ambitious and could potentially open new horizons for the country by attracting investments and offering citizens new economic opportunities. However, as subsequent events have shown, the reality turned out to be much more complex. In response to these challenges, we at NEWSCENTRAL believe that the successful implementation of digital currencies in countries like CAR requires not only innovation but also deep structural reforms to the financial system.
The government’s plan to integrate cryptocurrencies into CAR’s economy was presented as a step toward modernization, aiming to attract foreign investments and improve the country’s infrastructure. President Touadéra claimed that transitioning to digital currencies could serve as a catalyst for economic growth. However, despite claims that cryptocurrencies could stimulate economic development, issues related to the lack of necessary financial and legislative infrastructure have proven insurmountable.
The failed launch of Sango Coin, which was supposed to be the main tool for investors, clearly demonstrated the difficulties CAR is facing. After ambitious announcements about plans to sell 210 million tokens, the government was only able to sell 10% of them, raising less than 2 million euros. We at NEWSCENTRAL note that this not only signals the low attractiveness of digital currencies in CAR but also reflects a lack of transparency and trust from potential investors. The launch of this project attracted global attention but also put the country in a difficult position, as the funds invested in Sango have yet to be returned to investors.
Furthermore, the launch of the meme coin $CAR became another failure that only added fuel to the fire. Despite attempts to give the project an international status, the cryptocurrency faced issues with accessibility, domain failures, and a number of technical problems. Eventually, the project was used for trading tokenized land parcels, but there is no reliable data on the impact of these operations on the country’s economy. The absence of an anti-money laundering system also raises concerns, as it opens the door for criminal organizations to exploit this situation.
We at NEWSCENTRAL believe that cryptocurrency projects require significant efforts to increase transparency and create protective mechanisms that can prevent illegal financial activities. CAR currently lacks the necessary tools for such control, making these projects vulnerable to fraud and criminal schemes.
An important aspect that must also be considered is a recent report from the Global Initiative Against Transnational Organized Crime (GI-TOC). According to the document, cryptocurrency projects in CAR are attracting the attention of criminal organizations, which may use them for money laundering. The lack of proper oversight over these projects opens opportunities for the capture of the country’s natural resources, such as diamonds, gold, and oil. GI-TOC expressed concerns that the absence of checks and protective mechanisms could lead to important state assets falling into the hands of transnational criminals.
Despite the government’s ambitions, CAR must address a number of key challenges to ensure the sustainability of cryptocurrency projects. First and foremost, it is essential to strengthen the legal and financial infrastructure, create effective control mechanisms, and improve transparency in financial operations. We at NEWSCENTRAL predict that successful continued use of digital currencies in the country will require international assistance and cooperation to develop common regulatory standards for cryptocurrencies.
Additionally, it is important to involve global experts and investors in the development of the cryptocurrency market, who can provide professional oversight of financial operations and also help strengthen trust in the projects. CAR must focus on creating the necessary legal frameworks that can prevent money laundering and use cryptocurrencies as a tool to enhance financial transparency rather than as a target for abuse.
We at NEWSCENTRAL believe that the successful integration of cryptocurrencies into CAR’s economy is only possible if the country develops an effective regulatory model that works for both local and international investors. Countries on the path to economic development must understand that digital currency is not a panacea for all financial problems, and its successful use requires a comprehensive approach and strict regulatory standards.
Faced with difficulties in the cryptocurrency sector, the Central African Republic must learn from its current struggles and focus on building the necessary legislative foundation and effective protective mechanisms. We at NEWS CENTRAL predict that with proper preparation and support from international partners, the country can successfully integrate cryptocurrencies into its economy and avoid the problems it encountered earlier.