Central African Republic Launches Sango Coin, Crypto That Is Considered To Have Unclear Future

President of the Central African Republic, Faustin-Archange Touadera. (photo: twitter @FA_Touadera ·)

JAKARTA - The Central African Republic will start selling a cryptocurrency it claims will be worth 21 million US dollars next week (IDR 314 billion). This announcement came from the country's government on Friday, July 15.

The announcement comes amid a broader rout in the crypto industry today and skepticism over the project's viability in a country that is not well connected and still beset by civil war.

"Sango Coin", described as the "national digital currency" of Rep. Central Africa will go on sale on July 21. According to the country's investment website Sango, the minimum investment to buy the coin is 500 US dollars (IDR 7.5 million) to be paid in cryptocurrencies, including Bitcoin and Ethereum.

Central African Republic, is a country that has access to the internet and low electricity. But they became the first African country to make bitcoin legal tender in April. This has surprised many crypto experts. even the International Monetary Fund (IMF) warned them to be careful in taking that policy.

The nascent cryptocurrency market is currently highly volatile, while bitcoin is down about 55% so far this year. Prices surged in 2020 and 2021, but have fallen sharply in recent months as investors dump riskier assets.

Doubts and the so-called "crypto winter" do not seem to dampen the enthusiasm of the Central African Republic government for its scheme.

“For us, a formal economy is no longer an option,” President Faustin-Archange Touadera said at an online event that marketed his crypto project earlier this month.

In Central America, El Salvador's big bet on bitcoin has deteriorated in recent months as the cryptocurrency has seen a sharp decline. Even his holdings fell more than half in value to 49.4 million US dollars.

El Salvador, last September, became the first country to make bitcoin a legal tender, alongside the US dollar, despite criticism from the IMF and world credit agencies.

Under this Central African Republic initiative, foreign investors will be able to purchase citizenship for crypto worth US$60,000, with the equivalent Sango Coin held as collateral for five years, and an “e-residency” for US$6,000, held for three years, according to Sango website.

The 250 square meter plot of land is listed as US$10,000, with Sango Coins locked down for a decade. It is unclear whether these options will also go on sale next week when 210 million Sango Coins are offered, priced at 0.10 US dollars each.

The website says there will be 12 more coin sales, with prices increasing all the time. Many details are unclear, including what technology is being used, which companies are supporting the launch, and whether the token price will be free-floating or fixed.

The terms and conditions of the Sango investment platform state that unused Sango Coins cannot be returned and converted back into other cryptocurrencies.