A recent report by the Global Initiative Against Transnational Organized Crime (GI-TOC) has highlighted the negative impacts of the Central African Republic’s (CAR) cryptocurrency initiatives.

The analysis indicated that instead of promoting financial inclusivity, these initiatives have primarily enriched elites while exposing the nation to external criminal elements.

In the report titled “Behind the blockchain: Cryptocurrency and criminal capture in the Central African Republic”, researchers criticized CAR’s implementation of crypto-related projects, including the adoption of Bitcoin (BTC) as legal currency and the launch of the Sango Coin, calling the efforts unrealistic given the country’s limited resources and infrastructure.

Quoting the report:

“An impoverished population, exposed to mass executions, torture and gang rape, with limited access to electricity, mobile phones and the internet, cannot engage in crypto investments in any meaningful way.”
Translation: The report suggests that the initiatives primarily serve foreign interests rather than those of the local populace.

The report also expressed concern over a law enacted in July 2023 that allowed for the tokenization of national resources, asserting this threatens the nation’s sovereignty.

Bitcoin Legal Status Changes

In April 2022, CAR adopted Bitcoin as legal tender, following El Salvador. Yet, the country reversed this decision in March 2023 due to pressure from the Economic and Monetary Community of Central Africa (CEMAC) and the International Monetary Fund (IMF).

The GI-TOC reported that only 15.7% of the population has access to electricity, and fewer than 40% have mobile phone subscriptions, making the push for cryptocurrency impractical for most citizens.

Additionally, President Faustin-Archange Touadéra was noted to have connections with crypto advocates and individuals tied to illegal activities. The report criticized these initiatives as primarily benefiting a select group while contributing to foreign influence and organized crime at the expense of the broader population.

Performance of Crypto Projects

The performance of CAR’s cryptocurrency schemes has been disappointing. The Sango project, aimed at attracting crypto investment, achieved less than 10% of its sales target. Similarly, the CAR memecoin has seen significant market volatility and technical difficulties, currently valued at approximately $0.004105, which is more than 93% lower than its value from the previous year.