The government of the Central African Republic (CAR) is planning to tokenize its mineral resources shortly after making bitcoin a legal tender.
Minerals Tokenization Next on Agenda for CAR
The CAR President Faustin-Archange Touadéra announced the government’s plans in a tweet on Thursday (June 2, 2022). President Touadéra said that the plan to tokenize the country’s resources is a strategy to attract major investors and crypto companies to the landlocked nation.
Also, in a press release signed by the Minister of State, Director of Cabinet at the Presidency of the Republic, Obed Namsio mineral resources that abound in the country include diamond, petroleum, copper, rhodium, iron, and lignite. CAR also has lithium, manganese, cobalt, limestone, and uranium, among others.
According to the press announcement, tokenizing the minerals will open CAR to investment opportunities. In addition, the tokenization of the country’s resources will provide more jobs in CAR and also boost the nation’s economy.
While there is no set date on when the plan is supposed to take effect, the decision to tokenize the country’s mineral resources shows the government’s continued support for cryptocurrency and blockchain technology.
CAR Leading Bitcoin Adoption in Africa
As previously reported by crypto.news, CAR became the first country in Africa to make bitcoin a legal tender, while becoming the second nation globally after El Salvador to legalize BTC. Later in May, CAR revealed plans to launch a crypto initiative called SANGO which will see the creation of a cryptocurrency economic zone and is open to potential investors.
However, the International Monetary Fund (IMF) expressed concerns about CAR’s bitcoin adoption. According to the IMF in a statement at the time:
“The adoption of Bitcoin as legal tender in C.A.R. raises major legal, transparency, and economic policy challenges. IMF staff are assisting the regional and Central African Republic’s authorities in addressing the concerns posed by the new law.”
The IMF also raised similar concerns following El Salvador’s bitcoin legalization. The international body back in January urged the Central American country to narrow the bitcoin’s scope and further asked the government to remove the crypto’s legal status, stating that using BTC could affect financial integrity, consumer protection, and financial stability.
However, El Salvador President Nayib Bukele has continued to move ahead with the country’s bitcoin adoption plans. Apart from working towards building a Bitcoin City, the El Salvadoran government has been accumulating BTC.
Bitcoin and Crypto Get Mixed Reactions from African Nations
While CAR has paved the way for other countries in Africa, not every nation in the continent is open to accepting bitcoin and cryptocurrency. Morocco placed a blanket ban on crypto back in 2017, while the Nigerian central bank banned financial institutions from servicing crypto-related businesses, although it allowed peer-to-peer transactions.
Meanwhile, the Central Africa Republic and El Salvador believe that bitcoin could transform their economies and benefit the people, with both countries also making offers that would attract bitcoin enthusiasts and crypto companies. Unlike El Salvador, it remains to be seen if CAR will be involved in purchasing BTC.