Less than a month after making BTC its official currency, the Central African Republic announced the launch of an investment-focused “crypto-island”. According to the announcement, the objective is to create a hub to attract global investors to the country.
The project was nicknamed Sango, after one of the languages spoken in CAR. One page was launched on Monday (23) containing a waiting list and a space for contributions. There is also a 24 page presentation made in PDF.
Faustin-Archange Touadéra, chairman of RCA, had written a tweet in which he promised a “planned next phase” regarding BTC adoption. The president is one of the main supporters of Sango, whose approval will be discussed in the country’s parliament.
A “crypto-island” of mainland
Although CAR has no sea outlet, the Sango region was called a “crypto-island” in the official presentation. The document shows images of undulating skyscrapers and lakes dotted with sailboats.
In some ways, the Sango project has similarities to El Salvador’s Bitcoin City. In this sense, the region will also have tax exemptions, such as taxes on income and capital gains.
The country also plans to create e-residency programs, facilitate BTC land purchases, and develop a cryptocurrency wallet. Sango companies will have easy access to natural resources such as gold, diamonds and uranium.
Finally, the country will institute a “citizenship by investment” program, with zero tax on income and companies, according to the presentation.
According to Touadéra, the project should have its own regulations approved by the country’s Congress. It is estimated that this will occur by the end of 2022.
New tax havens?
RCA passed its BTC Law on April 27. The project established BTC as the official currency, exempting all transactions made with the cryptocurrency from taxes. Less than a month later, the country has already announced its first legal center for investing in cryptocurrencies.
This initiative is not unique only in the country, but in the entire continent. With this, RCA remains firm in its purpose of integrating BTC into its economy. Indeed, these were the president’s words on Monday, explaining why he chose to digitize the economy.
“The formal economy is no longer an option. An impenetrable bureaucracy is keeping us trapped in systems that don’t give them a chance to be competitive,” said Touadéra.
The president seems to be talking about the CFA franc, although he has not mentioned it by name. The currency, used by 14 African countries, is controlled by the French government. As a result, millions of people have their destinies tied to a government far away and oblivious to their needs.
So far, the government has provided few details about Sango’s logistics, other than those noted in the presentation. There was no indication when the investment center will be open or how it would function.