The “Sango Coin,” described as a “national digital currency,” will go on sale on July 21 with a minimum investment of $ 500 to be paid in cryptocurrencies including bitcoin and ethereum, according to the country’s Sango investment site.
The Central African Republic, where internet access and electricity are scarce, became the first African state to be legal tender in bitcoin in April, raising eyebrows among many cryptocurrency experts and provoking warnings from the Fund’s international currency.
The nascent cryptocurrency market is highly volatile, with bitcoin having dropped around 55% since the start of the year. Prices have risen in 2020 and 2021, but have fallen sharply in recent months as investors have moved away from risky assets.
Doubts and what has been dubbed a “crypto winter” don’t seem to have dampened the Central African Republic government’s enthusiasm for its project.
“For us, formal economics is no longer an option,” President Faustin-Archange Touadera said at an online marketing event of his crypto project earlier this month.
In Central America, a large Bitcoin bet by El Salvador has been tightened in recent months as the cryptocurrency has experienced a steep decline as its holdings have fallen by more than half in value, to $ 49.4 million.
Last September, El Salvador became the first country to make bitcoin a fiat currency, along with the US dollar, despite criticism from the IMF and credit bureaus.
Under the initiative of the Central African Republic, foreign investors will be able to acquire citizenship for $ 60,000 worth of cryptocurrency, with equivalent Sango coins held as collateral for five years and “e-residences” for $ 6,000 dollars, held for three years, according to Sango site.
A 250-square-foot parcel of land is priced at $ 10,000, with Sango Coins kept for a decade. It was unclear whether these options would go on sale again next week, when 210 million Sango coins will be offered, priced at $ 0.10 each.
The website said there would be 12 more coin sales, with the price going up each time. Many details were unclear, including the technology used, the companies supporting the launch, and whether the token’s price would be variable or fixed.
The terms and conditions of the Sango investment platform state that unused Sango coins cannot be redeemed and converted into other cryptocurrencies.