Rabat – The Central African Republic (CAR) launched its official state-backed cryptocurrency on Sunday.
With this move, the country hopes to become a continental hub for cryptocurrency operations as it promises zero taxes to incentivize the creation of a flourishing crypto trading ecosystem, according to multiple news sources.
The decision comes two months after the Central African Republic became the second country after El Salvador to legalize the use of cryptocurrency, going against the prevailing government skepticism of crypto.
CAR President Faustin Archange Touadera announced the new measure during an online event, saying that the country is set to launch a “new digital system powered by Blockchain technology.”
While Touadera said that CAR has already come up with a name for the currency, opting for “Sango Coin” and “Crypto Island,” he did not offer many details as to when the currency is set to become available.
The timing of the decision is rather strange as the cryptocurrency market is currently going through the longest bear market since its inception in 2008.
Since November 2021, the crypto market saw $200 wiped out of its capital, with Bitcoin, the most valuable coin, taking a nosedive to $20,000 after previously reaching an all-time high of $69,000.
While speaking at the online event, the president said that the decision aims to enhance financial inclusion in Africa. The continent has the highest ratio of unbanked populations at 57%, as financial infrastructure is geographically inaccessible to a substantial chunk of the population in almost all African countries.
As Touadera sees it, smartphones are offering an alternative to traditional banking services and financial bureaucracy. But the CAR’s decision has raised eyebrows in the financial world as skeptical intentional observers cite the high volatility level of crypto assets.
Read Also: Crypto Crisis Takes Down 80,000 Crypto Millionaires
