Wednesday, October 5, 2022

Court rules against crypto-for-citizenship program in Central African Republic

The constitutional court of the Central African Republic (CAR) has ruled against the crypto-for-citizenship program.

About a month ago, CAR launched a program geared toward bolstering crypto adoption in the African region. Part of the program would see foreign nationals be able to buy CAR citizenship for $60,000 worth of crypto. But they must hold the same amount of Sango tokens as collateral to be returned after five years. Similarly, an individual may buy the e-residency for $6,000 with Sango tokens locked for three years. Also, a 250-square meter plot of land could be bought for $10,000 in the CAR with Sango tokens to be returned ten years after.

However, the Constitutional Court of CAR has now ruled against the move, saying it is “unconstitutional.” According to a Monday report by Reuters, the court says that there is nothing like market value in nationalities, and so the program should not continue.

Crypto-for-citizenship, a key part of CAR’s global crypto hub ambitions

The crypto-for-citizenship program itself was part of the country’s efforts to create a global crypto hub. Such that the region will begin to attract crypto enthusiasts from across the globe. Besides, it is not unusual for rich investors to enrol in second citizenship programs that are based on an investment. Usually, this allows them to conduct their businesses more easily, reduce tax, and improve the ease of travel.

CAR also planned to implement new crypto regulations following its milestone achievement of adopting Bitcoin (BTC) as a legal tender in April. And so, in May, the CAR’s government launched the Sango crypto hub. 

While the court may have moved against using crypto to buy citizenship, CAR’s Sango token will very much continue to thrive. But its adoption might be slower than expected.

According to the CAR government, the maximum supply of the Sango token is 210 million. However, less than 20 million tokens have been bought so far.  For this, officials have extended the sales period by another five weeks and would be hoping that sales will pick up the pace. Each token goes for $0.10 in the initial coin offering (ICO) stage but might hit $0.45 by the final round.

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