African countries

The Central African Republic will become one of the first African countries to have its own digital currency

Faustin-Archange TouaderaPhotographer: Valeria Mongelli/Bloomberg

The Central African Republic is about to step into the financial future with its latest initiative.

The country, which was the first on the African continent to adopt Bitcoin as legal tender in April 2022, has announced its own digital currency, according to the country’s leader.

“Sango Coin will be the currency of the next generation,” President Faustin-Archange Touadera said during a virtual briefing by Bloomberg. The digital currency could be widely available in the third quarter of 2022.

While exciting, the news comes with a bit of trepidation.

The country’s ambitious plans conflict with its current economic situation, being one of the poorest countries in the world with pervasive infrastructure problems. Their senior government officials said they aimed to make it easier for its citizens to transfer money, but Bloomberg pointed out that only 557,000 of its 4.8 million people have access to the internet and constant power coverage.

According to the project websitethe CAR Treasury will hold 20% of the digital currency, the Sango coin is also expected to be used for marketing the country’s resources, government services, residence and land ownership.

“The Central African Republic sits on a mountain of resources – gold, diamonds, rare minerals, untapped resources. Sango Coin will enable direct access to our resources for the whole world,” Touadera said according to a Bloomberg report.

Although the CAR is one of the first African countries to adopt digital currency, it is not the only one.

Afrotech before reported that Ghana will also launch a new digital currency – e-cedi, which aims to drive consumers away from decentralized cryptocurrencies like Bitcoin.