What is Sango Coin, Central Africa’s Bitcoin Companion?
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If you haven’t heard the news, the Central African Republic adopted Bitcoin as legal tender last year. It followed in the footsteps of El Salvador in more ways than one. El Salvador’s president is an avid supporter of Bitcoin, and so is CAR’s president, Faustin-Archange Touadera. He has voiced his support for crypto and Bitcoin online, calling the latter ‘universal money’.
After accepting Bitcoin as legal tender, the Central African Republic also moved to create a new crypto token – the Sango Coin. Why is that? Is Sango important to the country’s Bitcoin plans? As a matter of fact, it’s more than just a companion, but an integral part of the country’s plans to integrate Bitcoin further.
Token, Not a Currency
When plans for the country’s own crypto were announced, many saw it as just another government-backed currency. However, the main technician who oversaw its development, Mamadou Moustapha Ly, says that it’s a token, not a currency. He also says that there’s a clean division between Sango and Bitcoin. CAR’s laws clearly state that Bitcoin is the country’s official currency, while Sango Coin is a project for the CAR state.
Why is it important? Sango offers distinct opportunities for foreign investors. Among them is a CAR passport, citizenship by investment, governance advantages, and more. To buy Sango essentially means buying residency in CAR, but without investing into the government-backed currencies.
Why did this happen? El Salvador adopted Bitcoin, but didn’t come up with its own crypto token. Well, El Salvador initially allowed foreigners to buy e-residency by investing 3 BTC. That law was rescinded later. In CAR, buying e-residency is only allowed by an investment of over $6,000 in Sango coin in a period of 3 years. Through the use of the token, foreign investors can also access the country’s strategic resources.
By investing in it, they will do business in CAR by using Bitcoin if they want to. That’s how the two are linked. Money raised through the sale of Sango will be used to buy Bitcoin, which is a more viable alternative than El Salvador’s cat and mouse game with BTC’s volatility.
Different Priorities
Bitcoin adopters usually hail the cryptocurrency as the solution to many of their problems. However, the Central African Republic has other priorities. Its priorities are education, clean water, education, and better Internet connectivity. The country needs investment fast, and the best way to obtain it is via foreigners’ investment in Sango.
Many experts call it a fast-track to direct foreign investment. The use of a crypto token—not currency— allows much more flexibility and speed when conducting transactions. It reduces the risk of fraud and sidesteps all the bureaucracy. In short, it’s a much better alternative than getting cash flow into the country as it doesn’t touch on dollars.
Sango also allows the government to easily control the flow of funds. The risk of capital flight is significantly reduced, and it’s a fast way to move robust revenues. It’s an integral part of the country’s plans to adopt and use Bitcoin, so it remains to be seen how it all works.
