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Central African Republic Prepares to Set Up Bitcoin Investment Hub

Detractors call it an ill-judged scheme.

 

The Central African Republic (RCA) government prepares to usher in a Bitcoin investment hub. This is coming right on the heels of its bold move of accepting BTC as a legal tender last month. This step appears to be its latest attempt to provide a structure for Bitcoin adoption. 

The new initiative, termed “Sango”, will help usher CAR into a “digital future of endless possibilities”, according to the government’s published document. Although “Sango” has no current blueprint, investors can already register their interest on a waitlist on the platform.

Just last week, the landlocked country passed a bill to legalize Bitcoin as a currency of their economy. The move made RCA the first African country to take this step and the second across the globe, after El Salvador. President Touadera of RCA stated that they made the decision to improve their citizens’ standard of living. 

Governing Bodies Warn Against This Move

However, Central Africa’s regional banking regulator (CEMAC) does not seem to agree with the country’s spirited techy direction. CEMAC oversees banking  structures across Chad, Republic of the Congo, Equatorial Guinea, Cameroon, Gabon, and République Centrafricaine (RCA).

The economic community had earlier placed a ban on crypto among these nations, citing instability. Therefore, following RCA’s initial announcement of Bitcoin adoption, CEMAC drummed up a warning reminder. CEMAC sees crypto as an unsafe financial investment and “to be avoided at all costs”.

The economic regulator’s viewpoint is not a new one among African states. While several African nations are indifferent to the rise of cryptocurrencies within their jurisdictions, others have gone so far as to place an outright ban on crypto. Some of these countries include Algeria, Egypt and Morocco, and many others. In addition, Terra’s recent collapse and its effects on the market have also not helped matters. Of late, international regulatory bodies have expressed concerns regarding the volatility of the market. CEMAC, from this view lens, is no exception.

Regardless, the adventurous RCA government appears very willing to brave whatever dangers cryptocurrencies may pose. In response to CEMAC concerns, President Touadera explained that traditional structures were no longer a viable path. The President claims that existing mainstream structures are keeping the country stuck in “systems that do not give a chance to be competitive.”

Basic Challenges

Despite Touadera’s radical attempts to reinvigorate his country’s economy, some crypto experts are not impressed.  There is evidence that some of the country’s residents are also doubtful. Electricity and internet availability are major issues the country faces. Thus, from a detracting perspective, it is difficult to envisage any kind of successful outcome for the economic-forward project. 

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At writing, the government was yet to release any further information concerning the launching or running of its novel BTC platform.

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