The Central African Republic (CAR) intends to tokenize its natural resources to attract foreign investment and more in-depth use of the blockchain.
In April, the CAR became the second state in the world after El Salvador and the first African country to recognize bitcoin as legal tender. The country is now planning to delve deeper into the use of blockchain. CAR President Faustin-Archange Touadera introduced a new initiative to democratize and tokenize the resources of a country that abounds in diamonds and timber.
The country’s natural wealth will be presented in the form of digital assets that foreign investors can access, the president said. He has already tasked Parliament with developing the legal framework and strategies to create these investment opportunities.
The CAR government first hinted at the tokenization of assets last month with the introduction of the state-owned cryptocurrency project Sango. This initiative aims to turn the CAR into a hub for digital asset development in Africa. Crypto asset firms and investors will not be required to pay corporation tax. They also have an e-residency program and citizenship by investment.
In May, the Bank of Central African States (BEAC) said the CAR government would be better off focusing on solving numerous other problems. The regulator opposed the legalization of bitcoin in the country, which could become a serious competitor to the Central African franc and disrupt the financial stability of other states using this currency. The International Monetary Fund (IMF) is of the same opinion.
Source: Bits
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