The Central African Republic (CAR) has embraced opaque cryptocurrency initiatives that may expose state assets to foreign criminal networks.
- The Central African Republic (CAR) adopted Bitcoin as legal tender in 2022, becoming the first African nation to take this step.
- President Faustin-Archange Touadéra supports cryptocurrencies, claiming they will fund infrastructure and development projects.
- The GI-TOC report on Wednesday raised concerns of potential money laundering and lack of transparency in CAR’s cryptocurrency ventures.
- The Sango Coin project, aimed for growth, faced legal restrictions and low investor response, with the future funds’ fate uncertain.
The Central African Republic (CAR) has embraced opaque cryptocurrency initiatives that may expose state assets to foreign criminal networks, according to a report published Wednesday by the Global Initiative Against Transnational Organised Crime (GI-TOC).
Since taking office in 2016, President Faustin-Archange Touadéra has positioned himself as a proponent of digital currencies. In 2022, CAR became the first African nation, and only the second globally, to adopt bitcoin as legal tender.
The president has argued that cryptocurrency could bring prosperity by generating funds from non-traditional sources for infrastructure and development projects, according to Reuters report.
The GI-TOC report highlights concerns that the lack of transparency in CAR’s crypto ventures benefits a small circle of insiders and could allow transnational criminal organisations to launder money.
A senior CAR government official, speaking anonymously, dismissed the report as an attempt to discredit the country. They argued that the cryptocurrency initiatives are meant to offer alternatives to conventional banking systems and address restrictions imposed by global financial institutions.
Sango coin and $CAR under scrutiny
The GI-TOC report focused on two initiatives. The first, the Sango Coin project, aimed to transform the capital, Bangui, into a “futuristic city,” offering citizenship, e-residency, and land to investors.
However, the project faced legal hurdles when the Constitutional Court blocked some incentives in August 2022, and it sold only 10% of its 210 million token target, valued at under €2 million. In April, Sango Coin announced plans to take a “new direction,” leaving the fate of invested funds unclear.
The second initiative, $CAR, is a meme coin launched in February to raise CAR’s global profile and support development. The debut was disrupted when the coin’s website domain was suspended hours after launch.
While $CAR tokens have been used to purchase tokenised land, there is no evidence that the proceeds have supported the national budget.
GI-TOC warned that the government’s proposed plan to extend the cryptocurrency schemes to mineral concessions, without proper identity verification or anti-money laundering safeguards, could effectively auction off diamonds, gold, and oil to transnational criminal networks.
