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TL:DR,

• The CAR tokenization law enables citizenship and land ownership through SANGO coin investments, transforming property rights management despite low internet penetration challenges.
• Central African Republic implements blockchain for land registration and citizenship acquisition through digital asset holdings, requiring $60,000 in SANGO coins for citizenship.
• Africa’s first tokenized real estate framework faces implementation hurdles due to infrastructure limitations while promising revolutionary property management solutions.

The anticipated CAR tokenization law is now valid as the Central African Republic doubles its efforts to drive blockchain adoption throughout its nation. The unanimous decision from the National Assembly has created a business-friendly environment in the country to revolutionize how resources as managed, shifting into a digital frontier.

CAR Tokenization Law Revolutionizes Digital Assets and Land Ownership

“The Presidency of the Republic is pleased to inform national and international opinion that following Law No. 22.004 of April 22, 2022, governing cryptocurrencies in the Central African Republic, amended and supplemented by Law No. 23.005 of April 6, 2023, the Central African Republic has made a major shift towards adopting an innovative system for mobilizing financial resources aimed at promoting the development of local communities. This strategic shift involves the adoption of blockchain technology.”

President Faustin Archange Touadera plans to position the nation as a leading participant in the global financial landscape. The passed CAR tokenization law will enable the online acquisition of business visas and facilitate the establishment of businesses by citizens and foreigners by streamlining the obtaining of licenses in tokenized real estate, natural resource exploitation, agriculture, and forestry.

The CAR Digital Economy and SANGO Coin Ecosystem

The report from the cabinet management stated that the country was aiming to establish an environment conducive to business growth through the governance and tokenization of natural resources and rights in the Central African Republic.

This legislative framework is the first of its kind in the world and will allow the CAR to become one of the most business-friendly environments in Africa.

The innovation enables new pathways for tokenized real estate developments and investments previously inaccessible. The nation has also built its Central Bank Digital Currency on the Sango Coin platform, becoming a member of Africa’s pro-blockchain nations.

RELATED: Bank of Ghana Partners with University of Ghana Forging Financial Revolution From the Ground Up

Main Aspects of the CAR Tokenization Law

The Sango Coin is tied to the tokenization process, as the country plans to list on exchanges. Holders of the cryptocurrency will have the following benefits:

• One can obtain the citizenship of the CAR if they hold a fixed collateral of SANGO coins worth US$60,000 for five years.
• The e-residency in the CAR can be acquired by locking fixed collateral of SANGO coins for US$6,000 for three years.
• Land plots in the country can be acquired by locking fixed collateral of SANGO coins worth US$10,000 for ten years.

With these, the nation’s citizens will have access to blockchain land ownership privileges, such as improved property rights management, and access to a transparent and secure system for land registration. It’s a cure to the region’s intense land disputes.

However, there is still a looming question of whether this law will help most citizens, considering the challenges the country is already experiencing.

Challenges to Implementation

According to many crypto experts, the success of the tokenization law in the CAR appeared unachievable to the vast majority in the short term. It needed more time to actualize the decision for several reasons.

For starters, its internet penetration rate is low. Bitcoin critics find it difficult to understand why an internet penetration rate of less than 12 percent has chosen Bitcoin as its transacting currency.

The CAR has an infrastructure deficit, and mobile connections are only 30 percent of the population. These challenges render the case for adopting Bitcoin less convincing.

The high internet prices in the country are impeding adoption efforts. The country’s uncertain institutional situation constrains investment in broadband networks and access to cross-border submarine cables. Consequently, the Central African Republic relies on expensive satellite connections for most of its international internet bandwidth. This eventually translates to high internet prices.

The process of how to acquire citizenship through SANGO coin faces more practical hurdles, with many struggling with its implementation.

Additionally, there is a negative take towards adopting Bitcoin as a legal tender. A few days after the decision to legalize Bitcoin, there was a disagreement among the Members of Parliament, with some challenging whether there was any urgency to fund Bitcoin adoption.

Is Africa Ready for Digital Asset Adoption?

While the CAR tokenization law present groundbreaking steps towards implementing the benefits of tokenized real estate, various questions are left unanswered.

The Central African country has shown that even the legislature must fully understand cryptocurrency’s economics before passing it as law. Recent bitcoin failure in CAR reveals loopholes that need fixing before the continent can widely adopt cryptocurrencies. Electricity and internet penetration need to be intensified. Crypto and blockchain education must be available at the grassroots levels for the target audience to understand the market.

RELATED: Unlock Radiant Horizons: Experience the Vibrant Pulse of Tokenized Investments.

The CAR has a population of more than 5 million inhabitants who must familiarize themselves with the basics. Some of them include a Bitcoin wallet, wallet’s public address recovery, or seed phrases. Achieving these basics increases the chances of the CAR succeeding in becoming a country that uses Bitcoin as a legal tender.

Crypto education for the larger population should also be accompanied by the CAR working with players in the crypto space.