We had forgotten it, but it has been more than a year since the Central African Republic became the second country to legalize bitcoin and cryptocurrencies. In the meantime, the project has, to say the least, bogged down in the face of obvious unpreparedness and internal opposition…
The Central African Republic (CAR) recently passed a law on the tokenization of natural and land resources, a virtual way to mobilize national and international capital. Central African deputies adopted this law by acclamation in the National Assembly. According to the parliament’s joint committee, the move would allow CAR to adopt blockchain technology and remove existing monetary barriers to boost the country’s economy.
As a reminder, the country legalized the use of bitcoin and cryptocurrencies a year ago. In the process, and against all odds, President Faustin Ange Touadéra also launched the Sango Coin, a national cryptocurrency intended to tokenize the country’s resources. But obviously, he wanted to put the cart before the horse and came up against a veto from the country’s institutions.
It was therefore necessary to take things patiently from the beginning so that the project could obtain the necessary consensus for its adoption. And things seem to be going that way now…
CAR’s Minister of Mines and Geology, Rufin Benam Beltoungou, says the law democratizes funding by allowing groups of people and institutions to invest in the country. He sees this as an opportunity to mobilize funding for development projects. In this context, cryptocurrency is used as a means of payment, while tokenization will finance various sectors, such as mining, oil, forestry, agriculture and land.
A law that is intended to be advantageous for investment
The law was signed into law by the President of the CAR and officially entered into force. It allows investors to acquire assets such as land and mining concessions using cryptocurrencies. It also sets the framework for the use of virtual currencies in the investment process, even for foreign investors. They have the right to transfer the entire annual profits abroad after paying taxes, duties and other obligations.
Some opposition MPs accuse the government of selling off the country’s natural resources. They emphasize that the priority should be to improve the means of control to allow better capture of resources.
In addition, the adoption of the tokenization of natural resources arouses apprehensions on the part of international and regional financial institutions, in particular the International Monetary Fund (IMF), the World Bank and the Bank of Central African States (BEAC). .
Despite these reservations and the challenges facing the country, the CAR is pursuing its ambition to mobilize finance through the adoption of blockchain technologies and the tokenization of natural resources. Time will tell if this approach will stimulate the country’s economy and foster long-term development.
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