The Central African Republic first announced plans to tokenize its land and natural resources on the blockchain in June last year.
The adoption of blockchain technology for this purpose is part of the national government's efforts to improve transparency and efficiency in the management of the country's lands and natural and mineral resources and to boost the development of new businesses that guarantee its economic growth.
Its president, Faustin-Archange Touadéra, announced that the tokenization of the country's resources on the blockchain will propel the Central African Republic towards a more favorable and prosperous future. The president also indicated that the initiative to tokenize its lands and natural resources will be carried out through the Sango project.
The Central African Republic has been one of the pioneering countries in the region in terms of adopting new technologies. In fact, last year it became the second country in the world to accept Bitcoin as legal tender, after El Salvador, although it has since reversed its decision due to the volatility in the BTC price.
In addition to this, the nation located in Central Africa is promoting a blockchain project called Sango, through which it seeks to integrate digital technology to transform its financial system and provide new innovative services based on cryptocurrencies and the blockchain.
Through the Sango project, the Central African Republic plans to tokenize its assets and natural resources, in order to make them available to national and international investors to foster its economic and social growth.
A law is approved that allows the tokenization of land and natural resources in the country
In the statement shared on social media, President Touadéra announced the approval of a law regulating tokenization in the country.
This new law, which was approved by the National Assembly on July 24, aims to foster business growth in the region, allowing the nation to convert its natural resources into digital assets and facilitating foreign investment and economic development based on them, according to the statement shared.
The new law allows for the creation of digital tokens backed by physical assets such as land and natural resources.
Furthermore, through blockchain tokenization, the Central African Republic also seeks to encourage digital transformation, ensuring that individuals, businesses and companies have new tools to establish their own businesses by taking advantage of the capabilities of emerging technologies. According to President Touadéra, interested companies will be able to obtain business licenses within different fields, including real estate, mining and agriculture, among others.
The Central African Republic is a pioneer in blockchain in Africa
The Central African Republic is emerging as the first nation in the world to pass a bill focused on the tokenization of its natural and mineral resources.
The country is setting a precedent for innovation, growth and technological development despite its current conditions and this is thanks to the innovative approach that its government is maintaining. According to President Touadéra, the nation has taken a firm and decisive step towards ensuring “growth, economic sustainability and financial preeminence at a global level.”
The Central African Republic government has signed an agreement with blockchain firm Bitfury to create tokens backed by diamonds, gold, timber and other natural resources, which will be issued on Bitfury’s Exonum platform and tradable on the global cryptocurrency market.
The Central African Republic also has its own cryptocurrency, called Sango Coin.
Continue reading: Central African Republic creates committee to regulate cryptocurrencies
