The parliament of the Central African Republic (CAR) has unanimously approved the Tokenization Law, according to a recent post on the official Twitter account of the Sango Project. New regulations enable tokenizing land and natural resources with the Sango blockchain. CAR hopes to attract investors with its crypto-friendly policies and a groundbreaking approach to tokenization.
In April 2022, CAR became the first African country to adopt Bitcoin as a legal tender. The move raised many eyebrows since CAR's internet penetration rate is among the lowest in the world, at slightly 10 percent of the total population, and access to electricity is limited.
Three months later, the country took an even bolder step towards the crypto economy by launching the Sango initiative. "Cryptocurrencies are the solution to tackling financial exclusion in the Central African Republic. For us, the formal economy is no longer an option," Faustin-Archange Touadera, CAR's president, said at a launch event.
The Sango project, according to its website, aims to "facilitate the tokenization of Central African Republic's resources for worldwide investors." The ecosystem is founded on Bitcoin as a Layer-2 solution similar to Liquid Network with built-in Bitcoin interoperability. The Sango blockchain supports smart contracts and fast transactions and contains a privacy layer.
The project includes the SANGO coin, which has been awarded the status of the national digital currency and is used for performing all interactions with the state, especially those related to ownership, transfer of value, and governance.
The new bill provides the legal framework to enable the investment process with virtual currencies via the Sango blockchain. Despite being one of the poorest nations worldwide, CAR is heavily endowed with natural resources, such as gold, diamonds, uranium, cobalt, or coltan.
The Sango project will act as a catalyst for tokenizing those assets into the hands of foreign investors, which has already spurred backlash from the opposition.