Diamonds in the form of tokens: the Central African Republic will “digitize” its natural resources to attract investors
By Ihor Shulhach 2056 4 Jun 2022
The CAR plans to become a digital leader in Africa and, according to the government, will tokenize its natural resources.
Following El Salvador, which legalized bitcoin, the government of the Central African Republic announced its intention to attract investors through the tokenization of natural resources. This was announced on Twitter by the President of the Central African Republic, Faustin-Archange Touadéra.
The country’s parliament has already been tasked with developing all the necessary laws to create a legal framework. According to the project, all the valuable resources of the CAR will be tokenized, and foreign investors will be able to buy them. Also, the Central African Republic became the first in Africa where bitcoin was recognized as a means of payment.
It is worth noting that the policy of the Central African Republic to improve the conditions for cryptocurrencies and active support of the digital industry concerns not only public resources but other aspects of the economy and business. Thus, investors or companies that are working with digital assets will not be subject to corporate tax in the CAR. In addition, foreigners who invest their capital in the country can already receive e-residency or citizenship for their investments.
These innovations produced a backlash from the Bank of Central African States, which stated that the CAR should deal with more pressing concerns than try to become a leader in digital technologies on the continent. The bank’s reaction to the legalization of bitcoin was highly negative. It called for the abolition of this decision, as the crypto asset could become a significant competitor to the national currency and bring down the Central African franc. According to the regulator, this could lead to an economic collapse and create problems for neighboring countries using the Central African franc. Experts from the International Monetary Fund supported the dissatisfaction of the Central African bankers.
As a reminder, the CAR also announced a new crypto hub project “Sango”.