The Central African Republic faces unprecedented political and economic challenges, as the country's ambition to adopt digital currencies has turned into a constitutional and legal crisis touching the very core of national sovereignty. After the government sparked controversy by launching the "Sango Coin" project, backed by Bitcoin, the Constitutional Court intervened to curb some of President Faustin-Archange Touadéra's ambitions, deeming the sale of digital citizenship and residency in exchange for cryptocurrencies a blatant violation of the constitution and a threat to state sovereignty, particularly given the political tensions preceding the elections.
Project background and controversial digital transformation
The story began in April 2022 when the Central African Republic surprised the world by becoming the second country globally and the first in Africa to adopt Bitcoin as an official legal tender alongside the CFA franc. Although the government justified the move as a means of financial liberalization and attracting foreign investment to a country suffering from weak banking infrastructure, it was met with widespread skepticism from international financial institutions.
The clash with the Constitutional Court and the concept of sovereignty
The situation worsened with the launch of the "Sango" project, which aimed to sell citizenship, land, and natural resources via cryptocurrencies. The Constitutional Court issued a decisive ruling nullifying these measures, affirming that citizenship is not a commodity and that selling land to foreigners through digital platforms infringes upon national sovereignty. This ruling dealt a significant blow to the government project and underscored that the drive towards financial technology should not come at the expense of national principles.
Economic and regional dimensions
This event cannot be separated from the regional context surrounding the CFA franc (CFA franc). Many analysts see Central Africa's adoption of Bitcoin as an attempt to break free from French monetary dominance and the restrictions imposed by the Central Bank of Central African States (BEAC). The regional central bank and the International Monetary Fund have repeatedly warned that the adoption of cryptocurrencies could destabilize the region's finances and facilitate money laundering, potentially isolating the country financially rather than integrating it into the global economy.
Influence on the political landscape and elections
With elections approaching, cryptocurrencies have become a political bargaining chip. While the government promotes the project as a tool for economic recovery and poverty reduction, the opposition views it as a dubious means that could be used to finance opaque activities or circumvent international sanctions. This division adds a new layer of complexity to the political landscape of a country striving for stability after years of internal conflict, making Bitcoin a key and controversial player in the country's political future.
