Central African Republic’s bet on crypto exposes state assets to new risks – Report

As the Central African Republic approaches a closely monitored national election, a new report is raising concerns about the country’s increasing dependence on cryptocurrency and its potential impact on public assets.

The report published on Wednesday by the Global Initiative Against Transnational Organised Crime (GI-TOC) highlights weaknesses in various government-backed crypto projects, warning that inadequate oversight could make state resources susceptible to misuse.

Concerns have arisen just days before voters go to the polls on December 28, as President Faustin-Archange Touadéra aims for a third term in a nation marked by years of political instability, armed conflict, and fragile institutions.

Touadéra has made a compelling public case for digital currencies since taking office in 2016. In 2022, the Central African Republic made history as the first African country to adopt Bitcoin as legal tender. The government positioned cryptocurrency as a means to bypass traditional banking systems and attract new funding sources.

A high-stakes digital shift

The GI-TOC report looks at two main projects that are part of the government’s effort to promote cryptocurrency. The first project is Sango Coin. This initiative aims to transform Bangui into a technology-focused city and attract foreign investment.

Investors were promised incentives like land access, e-residency, and even citizenship under the plan. However, the Constitutional Court later rejected several of these offers. The project struggled to succeed, selling only a small portion of its planned token supply before activity slowed down. It remains unclear what happened to the funds that were already raised.

New tokens, familiar concerns

The second project is $CAR, a meme coin supported by the government, launched earlier this year. This token aims to increase the country’s visibility and support its development. However, its launch faced challenges, as the official website was suspended shortly after it started.

While the coin has seen limited use in land transactions, public information is lacking on revenue generated and whether it reached government coffers.

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The report cautions that expanding crypto schemes to mineral concessions could have serious repercussions. It argues that lax identity checks and insufficient safeguards may lead to the trading of valuable resources like gold, diamonds, and oil without proper government oversight.

The government did not issue an official response to the report. A senior official, however, dismissed the findings as politically motivated, arguing that crypto initiatives provide alternatives to financial systems that have historically excluded the country.

For one of the world’s poorest nations, the report suggests that how these digital experiments are managed may shape not just economic outcomes, but public trust and control over national wealth.