Central African Republic’s Road to Web3 Gold: Bitcoin, Blockchain and Natural Resource Tokenization (RWA)
Original Author: Will Awang
Original source:Web3 Little Law
In August 2023, the Sango team of the Central African Republic (CAR)’s national digital currency project stated that the country’s legislative body had passed the Tokenization Law, regarding the tokenization of land and natural resources in the future. There will be no legal obstacles to the operation.
The Central African Republic became the second country to accept Bitcoin as legal tender in April 2022 (after El Salvador), and officially launched the Sango project in July last year to support the crypto initiative launched by the countrys parliament. At present, the country has become one of the most cryptocurrency-friendly countries in the worlds underdeveloped regions.
This article will use the white paper of the Sango project to see what a sovereign countrys digital currency Sango project is doing. Let’s separate the project itself and look at it from a national perspective as to why an underdeveloped African country has such faith and certainty in Bitcoin and blockchain technology.
（https://sango.org/）
National Digital Currency Project - Sango
The Sango project is an important project in the Encryption Initiative initiated by the Parliament of the Central African Republic and has received the support of the President of the Republic. The Sango project represents the determination of the Central African Republic to build a blockchain-based digital economy. According to the Sango project’s Roadmap, the project’s main future milestones include: (1) providing investors with democratic and decentralized investment channels through the tokenization of land and natural resources; (2) building crypto cities and crypto islands; 3) Develop into an African crypto center; (4) Build Sango App: as a bridge between residents and cities; (5) Support Bitcoin mining projects through sustainable energy.
（https://sango.org/#roadmapSection）
The Sango project is responsible for issuing the ecological native token SANGO, with a total supply of 21 billion. This is a national digital currency launched by the Central African Republic in July 2022. It is reported that SANGO is deployed on the Bitcoin side chain, and the main advantage of the side chain is that it can obtain the full liquidity of Bitcoin.
As a stake in the SANGO ecosystem, holders can obtain corresponding rights and interests by providing different investment amounts and locking in pledges, including investing in SANGO tokens worth US$60,000 to obtain citizenship (staking for 5 years), with an investment value of US$6,000. SANGO tokens can be used to obtain residency rights (staking for 3 years), and SANGO tokens worth US$10,000 can be invested to obtain land rights (staking for 10 years), etc.
（https://sango.org/#roadmapSection）
The first two rights and interests are well understood, and the third land property right (Land Property) has not yet been unlocked, and no clear legal explanation has been provided. Currently only available through the official website:
The government of the Central African Republic is the largest land owner in the country and hopes to sell the ownership of part of the land through tokenization. The method of sale is to invest $10,000 worth of SANGO tokens to obtain the rights and interests of a parcel of land. (Refundable after 10 years of pledge), etc. Each plot has an area of 250 square meters and is located in the Crypto City residential area on the banks of the Ubangi River in the Bangui extension of the capital.
At the same time, the Sango team will develop a 1:1 synchronized Crypto City metaverse project, where investors can manage properties in the metaverse. The Sango website shows that the houses/land purchased by investors in the Metaverse can also be obtained in reality. This experience gives people the feeling of an online Metaverse sales office.
（https://sango.org/ConceptDeckSango.pdf）
Natural Resource Tokenization Act
On August 22, 2023, the Sango project team announced that the countrys legislature had passed the Tokenization Act. The Tokenization Act clears the way for the tokenization of real-world assets such as land, agriculture, and natural resources in the future. Other provisions of the bill will make it possible to obtain a business visa online and allow citizens and foreigners to easily start businesses and obtain real estate, agriculture, natural resource extraction and forestry licenses.
（https://twitter.com/sangoproject/status/1693681573776826473）
Although what we can see from Sango’s official website so far is only the Central African Republic’s national-level investment promotion in the crypto world, and it is clear that national-level rights and interests (Utility) can be provided through SANGO tokens, but such as land, agriculture, natural resources, etc. The specific tokenization path of real-world assets needs to be further clarified and accompanied by legal explanations.
But in any case, the tokenization of natural resources can indeed bring many conveniences to issuers or investors. This means that investors around the world can easily use the Sango application to invest in these scarce natural resource assets through SANGO tokens. This will help Central African Republic’s assets quickly obtain tokenized capital and be presented on the blockchain in a transparent and democratic manner, while enabling wider investor participation through a no-access, fragmented approach.
This is the long-term goal of the launch of the Sango project, as it will make it easier for investors to invest in the Central African Republic and develop areas rich in natural resources, without having to deal with complex processes such as at least the legal aspects of cross-border investment. , such as the approval of foreign investment, the entry and exit of funds, investment country access restrictions, bilateral tax treaties, anti-monopoly review, management and operation of established joint ventures, etc.
The Central African Republic is estimated to have iron ore worth $2.2 trillion, diamond mines worth $258 billion, gold mines worth $60 billion, graphite mines worth $7 billion, uranium mines worth $5 billion and $2 billion limestone mine.
(https://sango.org/#roadmapSection)
Belief and determination in Bitcoin and blockchain
By reading the white paper of the Sango project, we can see that those underdeveloped areas in the world that we have ignored have a positive desire to talk to the world on the same frequency. Instead of struggling and being dominated by the old system, why not fully embrace Bitcoin and blockchain technology and head towards a bright future.
The Sango project white paper stated: Blockchain is considered one of the pillars of the fourth industrial revolution. Blockchain technology provides a valuable opportunity for underdeveloped countries such as the Central African Republic to establish an effective national digital currency system. At the same time, we can achieve the same level of development as developed countries. For a country where most of the population does not have bank accounts, reconstructing the entire economic system through the blockchain technology framework represents a leap-forward opportunity to enter the Web3 revolution.
Therefore, the Central African Republic will establish a complete legal framework to support cryptocurrencies and crypto-activities at all levels, including (1) Bitcoin as a legal tender (at least as an anchor currency); (2) all cryptocurrency-related activities Tax exemption; (3) The enactment of other relevant applicable laws.
After passing the Tokenization Bill, the President of the Central African Republic said in a press release: “The Central African Republic has made a major strategic shift in blockchain, using innovative systems to mobilize financial resources to promote local development. Community development. This innovative tokenization legislative framework, adopted for the first time in the world, will make the Central African Republic one of the most crypto-friendly business environments on the continent.”
（https://www.kitco.com/news/2023-08-24/Central-African-Republic-becomes-first-country-to-tokenize-land-and-natural-resources.html）
the shackles of history
The Central African Republic is one of the least developed countries in the world. Its economy is dominated by agriculture and its industrial base is weak. More than 80% of its industrial products are imported. Due to its remote location in sub-Saharan Africa and various historical reasons (French colonization, armed coups, chaotic governance, etc.), the Central African Republic missed several previous industrial revolutions, causing people to ignore the untapped potential of this land. , and in fact the same is true across much of Africa.
（https://www.veryhungrynomads.com/visiting-central-african-republic/）
The future of the Central African Republic will be carried by young people, who must be freed from the shackles of history in order to achieve national change. Therefore, the Central African Republic’s vision is to reform the entire economic system to adapt to young people and new technologies, and is seeking to establish a digital currency system based on blockchain technology and based on Bitcoin’s “digital gold”.
The Sango team predicts that by 2030, sub-Saharan Africa or the entire African continent has the potential to achieve leapfrog development. The local large young population and the huge untapped natural resources are two factors driving this leapfrog development. Very important pillar. Of course the need to employ appropriate technology is key to ensuring this is achieved.
Bitcoin and blockchain technology have achieved greater growth in Africa in recent years. Since Africa lacks mature banks and financial systems, Bitcoin, a peer-to-peer electronic cash payment system, is effectively used for cross-border payments. In addition, the fiat currencies of African countries suffer from very high inflation, lack of application scenarios and are subject to foreign exchange controls. These are cases where some outdated systems have not yet been resolved/changed. And digital currencies may represent a ready-made solution for a better future.
Synchronized with the world again
We can see that underdeveloped countries represented by the Central African Republic are not satisfied with compromising with the old system or struggling in the mud, whether in the creation of their monetary system or the construction of the digital economy. And being dominated, why not fully embrace Bitcoin and blockchain technology and head towards a bright future.
Obviously, they do not intend to spend precious funds on the early construction of traditional finance. They do not want to repeat the path taken by the United States and China. Instead, they hope to get it right in one step and jump directly into the Web3 era, so as to achieve the same frequency as the world again. Opportunities for development.
It can be seen that these countries have a set of real logic in their belief and determination in Bitcoin and blockchain technology, even though the road is full of thorns.
（Coindesk: Crypto Is Quietly Thriving in Sub-Saharan Africa: Chainalysis Report）
