Central African Republic opens door to foreign crypto investments
The Central African Republic has made a landmark decision. This makes it possible to facilitate foreign investments with cryptocurrencies in the country’s natural resources. The country is paving the way for a new era of economic growth with the passage of a law to that effect, announced by Parliament Speaker Simplice Mathieu Sarandji late Monday evening (29 May). This development comes just a few months after Bitcoin and other cryptocurrencies were legalized in April 2022 . And the Central African Republic subsequently announced the development of its own digital currency called Sango-Coin .
Central African Republic opens door to foreign crypto investments
According to the new law, foreigners will now also be able to invest in the country’s mining, agriculture and forestry sectors using cryptocurrencies. The text of the law emphasizes that investors “have the right, after paying taxes and other levies, to transfer all profits abroad.” This measure is intended to strengthen the confidence of international investors, according to various African media , citing the “AFP”. But also create an attractive business environment. The government emphasizes that the income from these investments should be used to promote economic growth and improve the living conditions of the population.
The announcement of these crypto plans caused astonishment in expert circles. After all, the Central African Republic is one of the poorest countries in the world. In addition, the state is struggling with poor infrastructure. Only about every tenth inhabitant has access to the power grid and the Internet at all. In addition, the country is in a monetary union with neighboring states that do not recognize cryptocurrencies. The Central African Republic’s decision to adopt Bitcoin as legal tender and now to facilitate foreign investment with cryptocurrencies makes the country a pioneer on the African continent.
Selling out of natural resources? Opposition criticizes government
However, there is also criticism of this development. The opposition accuses the government of selling off the country’s natural resources. Concerns are expressed that foreign investors could potentially gain control of the natural resources. While the country’s population does not benefit adequately from it. It remains to be seen how the government will ensure that these investments actually lead to the sustainable development of the country.
The Central African Republic has seen many civil unrests since gaining independence in 1960. The current president, Faustin Archange Touadera, is also under surveillance. As he is accused of using Russian paramilitaries to support his own troops in fighting the rebels in the country.
