How to acquire citizenship and land ownership in the CAR through cryptocurrency

• The CAR recently expanded its Sango blockchain digital initiative to include the tokenization of land and natural resources
• President Faustin Archange Touadera plans to position the nation as a leading participant in the global financial landscape
• One can obtain the citizenship of the CAR if they hold a fixed collateral of SANGO coins worth US$60,000 for five years.
• Land plots in the country can be acquired by locking fixed collateral of SANGO coins worth US$10,000 for ten years.

CAR passes law to tokenize land, natural resources

The CAR has revamped its efforts to create a thriving national digital economy as it recently expanded its Sango blockchain digital initiative to include the tokenization of land and natural resources. Through a unanimous decision, the National Assembly approved the groundbreaking Tokenization law intending to create a business-friendly environment in the country.

“The Presidency of the Republic is pleased to inform national and international opinion that following Law No. 22.004 of April 22, 2022, governing cryptocurrencies in the Central African Republic, amended and supplemented by Law No. 23.005 of April 6, 2023, the Central African Republic has made a major shift towards adopting an innovative system for mobilizing financial resources aimed at promoting the development of local communities. This strategic shift involves the adoption of blockchain technology.”

President Faustin Archange Touadera plans to position the nation as a leading participant in the global financial landscape. The passed law will enable the online acquisition of business visas and facilitate the establishment of businesses by citizens and foreigners by streamlining obtaining licenses in real estate, natural resource exploitation, agriculture, and forestry.

The CAR digital economy landscape

The report from the cabinet management stated that the country was aiming to establish an environment conducive to business growth through the governance and tokenization of natural resources and rights in the Central African Republic.

This legislative framework is the first of its kind in the world and will allow the CAR to become one of the most business-friendly environments in Africa.

The innovation will also allow business people to obtain operational licenses in real estate, agriculture, logging, and exploitation of natural resources. Additionally, each of these industries will operate through the Sango platform, leveraging the capabilities of blockchain technology. The Country has also built its Central Bank Digital Currency on the Sango platform.

Read: Central African Republic launches Bitcoin-backed Sango

Main aspects of the tokenization law

The Sango cryptocurrency is tied to the tokenization process, as the country plans to list on exchanges. Holders of the cryptocurrency will have the following benefits:

• One can obtain the citizenship of the CAR if they hold a fixed collateral of SANGO coins worth US$60,000 for five years.
• The e-residency in the CAR can be acquired by locking fixed collateral of SANGO coins for US$6,000 for three years.
• Land plots in the country can be acquired by locking fixed collateral of SANGO coins worth US$10,000 for ten years.

However, there is still a looming question of whether this law will help most citizens, considering the challenges the country is already experiencing.

The internet challenge complicates crypto adoption in the CAR

According to many crypto experts, the success of the tokenization law in the CAR appeared unachievable to the vast majority in the short term. It needed more time to actualize the decision for several reasons.

• The internet penetration rate is low. Bitcoin critics find it difficult to understand why an internet penetration rate of less than 12 percent has chosen Bitcoin as its transacting currency.
• The CAR has an infrastructure deficit, and mobile connections are only 30 percent of the population. These challenges render the case for adopting Bitcoin less convincing.
• There high internet prices in the country are impeding adoption efforts. The country’s uncertain institutional situation constrains investment in broadband networks and access to cross-border submarine cables. Consequently, the Central Africa Republic relies on expensive satellite connections for most of its international internet bandwidth. This eventually translates to high internet prices.
• There is still a negative attitude towards Bitcoin adoption in the CAR and Africa. A few days after the decision to legalize Bitcoin, there was a disagreement among the Members of Parliament, with some challenging whether there is any urgency to fund Bitcoin adoption.

Is Africa ready to adopt cryptocurrencies as legal tender?

The Central African country has shown that even the legislature must fully understand cryptocurrency’s economics before passing it as law. Recent bitcoin failure in CAR reveals loopholes that need fixing before the continent can widely adopt cryptocurrencies. Electricity and internet penetration need to be intensified. Crypto and blockchain education must be available at the grassroots levels for the target audience to understand the market.

The CAR has a population of more than 5 million inhabitants who must familiarize themselves with the basics. Some of them include Bitcoin wallet, wallet’s public address recovery, or seed phrases. Achieving these basics increases the chances of the CAR to succeed in becoming a country that uses Bitcoin as a legal tender.

Crypto education for the larger population should also be accompanied by the CAR working with players in the crypto space. Some players include cryptocurrency exchanges, payment processors, and wallet providers. Like El Salvador, the Central African Republic also needs to partner with a significant player in the crypto industry.

Read: Tokenization of real-world assets transforms investment

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• Source: https://web3africa.news/2023/08/23/news/how-to-acquire-citizenship-and-land-ownership-in-the-car-through-cryptocurrency/