After adopting bitcoin as legal tender, the Central African Republic now wants to create a cryptocurrency economic zone: Sango.
The Central African Republic (CAR), the second country in the world to adopt bitcoin as a legal tender after El Salvador, plans to develop a hub to attract cryptocurrency businesses and enthusiasts to the country.
The initiative, called Sango, was initiated by the National Assembly of the Central African Republic with the support of President Faustin-Archange Touadéra, according to a 24-page document detailing the project’s objectives. Sango seeks to “pave the way for a digital future of infinite possibilities,” according to its website. Touadéra tweeted in support of Sango on Tuesday.
In addition to building a legal Bitcoin and cryptocurrency hub recognized by its parliament, Sango intends to take “the legacy of Bitcoin to the next level” and institute a “cryptocurrency economic zone” on Sango Island where users will be able to propose, view and contribute to its future development.
According to the document, CAR’s plans include “facilitating bitcoin land acquisition for investors around the world” and creating a National Digital Bank. The government said in the document that it would also “fully support” access to the country’s natural resources such as gold, diamonds, uranium, lithium and oil.
Sango’s legal framework will include an electronic residency program, citizenship by investment, online business registration and no income or corporate taxes, according to the document. CAR plans to design this specific legal framework before the end of 2022.
The document also mentions the creation of a Bitcoin wallet to send, receive and store BTC that will be compatible with the Lightning Network, Bitcoin’s second layer protocol for cheaper and faster payments. The wallet will also support points of sale (PoS) for businesses to accept bitcoin payments and have an integrated accounting system.
CAR also plans to complete the Central African Backbone (CAB) Internet interconnection before the end of the year to drive its “total digital transformation,” it said in the document.
CAR last month became the second country in the world to adopt bitcoin as a legal tender after El Salvador pioneered the global stage with its Bitcoin Law in September 2021.
The news from downtown Sango comes to attract foreign investors to the country, likely in an attempt to further develop a nation that has one of the lowest GDPs, according to World Bank data.