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The Central African Republic (CAR) has taken a major step forward in its efforts to facilitate economic recovery and prosperity by establishing a committee of 15 experts to design a ‘more comprehensive’ cryptocurrency regulatory framework.
This comes following a high court ruling last year that aspects of the plans announced last year were ‘unconstitutional’.
In a recent tweet, President Touadéra has announced that 15 experts have been appointed from several ministries of the government to participate in a committee responsible for drafting a new, more comprehensive bill on the use of cryptocurrencies and providing CAR this unique opportunity for economic & technological development.
According to an official press release document included with the tweet, the ministries the experts were selected from include:
- The Ministry of Mines and Geology
- The Ministry of Waters, Forest, Hunting and Fishing
- The Ministry of Agriculture and Rural Development
- The Ministry of Town Planning, Land Reform, Towns and Housing
- The Ministry of Justice, Promotion of Human Rights and Good Governance
President Touadéra has shown great enthusiasm for cryptocurrencies and Bitcoin in particular, believing that they can provide an opportunity for monetary liberation and long-term wealth generation even in the face of global economic instability where soaring inflation, military conflicts and economic crises still hamper economies around the globe. He has also emphasized how access to cryptocurrencies can eliminate existing economic barriers within CAR’s borders, while simultaneously boosting national economic growth.
“With access to cryptocurrencies, the monetary constraints existing until now will disappear, with the fundamental objective of the measures adopted by the government being to grow the national economy.”
A Work In Progress
The Central African Republic’s Parliament adopted a bill governing cryptocurrencies in April 2022 and became the second country in the world to make Bitcoin legal tender, allowing citizens to legally buy and sell in BTC. Their plans have seen some initial setbacks however, with the country’s high court viewing some of the plans as unconstitutional last year.
Specifically, issues were raised regarding the constitutionality of the proposed mechanism to ‘purchase’ citizenship e-residency and land using the government’s cryptocurrency $SANGO. Through its ‘Project Sango’, the government had looked to decentralize property ownership with their newly revealed cryptocurrency. This would involve people locking a fixed collateral of SANGO Coins for land plots. This was deemed unconstitutional and ruling against this practice, the court stated that nationality does not have a market value and that residents must physically be present in the country.
The government also revealed an investment platform last year where top cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) could be staked alongside Sango Coin. The constitutional court ruling also put these plans at risk; however, officials retained faith that they could come up with a framework to satisfy the court.
This latest announcement shows the determination of the country’s governance to see their plans through, with a vision of potential economic growth and development that cryptocurrencies, digital assets and other blockchain technologies can offer.
In Need of a Boost
The CAR is among the poorest countries in the world, with a GDP of around $2.5 billion and a per capita GNI (Gross National Income) of just $980. The financial infrastructure is limited and access to traditional banking services remains low, with only a small percentage of the adult population having access to financial services such as formal savings, credit accounts and loans. This makes it difficult for smallholder businesses to grow and improve their livelihoods, which in turn impacts the economy as a whole.
Hopes of Future Growth
President Touadéra’s strong support for cryptocurrency adoption in CAR shows that he recognises its potential benefits on both a macroeconomic level and for individual residents alike.
This new bill could therefore be instrumental in creating greater financial stability in Central African Republic, in addition to increased financial inclusion and economic development. Provided, of course, that the new draft can satisfy the high courts in terms of constitutionality.
The appointment of this committee of experienced professionals will hopefully pave the way to the implementation of appropriate regulation, and a more prosperous future for the people of the Central African Republic.
