In theory, Bitcoin is not controlled by any power, cannot be censored, and is available globally. This is indeed a big change compared to the national currency, but the problem is that it takes the average Central African Republic citizen 60 years of work to buy a single Bitcoin.
“There is no sign of Bitcoin at checkout. Most traders and customers in the market do not have a phone or Internet. Especially the people outside Bangui, they have nothing,” added another student.
After El Salvador, the Central African Republic is the second country in the world to accept Bitcoin as legal currency. However, this decision was recently described as unhelpful as only tourists can actually use cryptocurrencies.
While one might expect other countries to follow El Salvador, no one thinks the Central African Republic is the right country to pioneer this technological reform.
| It takes the average Central African Republic citizen 60 years of work to buy a single Bitcoin. Photo: The Nation View. |
The opposition Central African Republic party opposed the proposal from the start. The Bank of Central African Nations (BEAC) also called the move problematic and stressed that the parallel use of another currency alongside the CFA franc not only jeopardizes the country’s relations, but also with other African countries.
Rescue efforts of the Central African Republic
Immediately after realizing that most Central African Republic citizens could not invest in Bitcoin, in July 2022, the government pushed ahead and launched its own digital currency called Sangocoin.
Sangocoin is considered the future of Central African Republic and requires minimal investment 500 USD. In return, investors can buy land in this resource-rich country for 10.000 USD and even buy citizenship for about 60.000 USD.
Even so, these proposals were later blocked by the supreme court. Sangocoin investors are also currently locked out of purchases and have no way to sell or exchange them.
Alex Gladstein, Chief Strategy Officer of Human Rights Foundation, also cast doubt on the feasibility of the Central African Republic government’s implementation of Sangocoin.
Despite being a leader in efforts to make Bitcoin a mainstream asset and a critic of the CFA franc, Gladstein still thinks the Central African Republic government’s plan is “half-hearted”.
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| Immediately after realizing most Central African Republic citizens could not invest in Bitcoin, the government pushed ahead and launched its own digital currency called Sangocoin. Photo: Coinmash. |
“I sympathize with the fact that a poor and vulnerable country accepts Bitcoin as a second currency. Moreover, the Central African Republic is also a country that has been financially controlled by the former colonial power. For decades, however, I’m not very optimistic about the implementation of cryptocurrencies,” Gladstein told Vice.
Gladstein conceded Bitcoin could be a very important financial technology for the people of the Central African Republic in the future, and that the government may have realized this could help everyone.
However, with a country rife with internal problems like the Central African Republic, there is still a lot to do before thinking about a Bitcoin revolution.