The Sango Coin initiative makes room for foreign nationals to become CAR citizens through the purchase of $60,000 worth of crypto, the Sango equivalents of which would be held as collateral for five years.
In the same vein, e-residencies could also be purchased for $6,000. More so, interested individuals can purchase a 250-square plot of land for $10,000, with the equivalent Sango Coins held as collateral for ten years.
These are some of the pecks that bitcoin-loving President Faustin-Archange Touadera’s government had hoped would lure foreign crypto investors to the country.
But the country’s Constitutional Court ruled that the entire process is unconstitutional. For one, the country’s constitution specifies that foreign residents are required to physically stay in the country, hence nullifying the idea of “e-residency”. Also, it ruled that nationality does not have a market value and therefore cannot be purchased.
According to a report by Reuters, a government spokesperson declined to comment on the implications the ruling would have on the Sango Coin project.
However, one of the immediate impacts could be that investors’ enthusiasm would be weighed down. And this would not augur well for CAR’s plan to raise some much-needed hard currency through this initiative.
Already, there have been many concerns over the feasibility of the crypto project, because CAR lacked the basic infrastructural requirements to facilitate a crypto project of that scale.
The country has one of the lowest internet penetration rates at 7.1%, according to Statista. More so, the country has one of the worst electricity access rates on the continent. All these are factors that could militate against its lofty crypto and digital currency ambitions.