The Central African Republic (CAR), a landlocked country in Central Africa has recently passed a law that allows foreign investment in cryptocurrencies after it adopted Bitcoin as a legal tender last year. According to reports, a bill was passed by acclamation, National Assembly president Simplice Mathieu Sarandji announced on Monday.

Announcing the passage of this law, the CAR government said, “The new law for the tokenization of natural resources sets down the framework for using Bitcoin and the country’s virtual currency, Sango, in the investment process. This includes foreign nationals wishing to invest in mining, agricultural, and forestry assets.”

“Investors have the right to transfer abroad all annual profits accruing to them after payment of taxes, duties, and other obligations,” the CAR Government further stated.

The law comes after the CAR announced in April 2022 that it had adopted Bitcoin as a legal currency, becoming the second country after El Salvador.

This decision has however put the country at odds with the Bank of Central African States (BEAC), the regional central bank that serves the Economic and Monetary Community of Central Africa (CEMAC), which the Central African Republic is a member of and violates the CEMAC Treaty.

Furthermore, President of Central African Republic Faustin-Archange Touadéra disclosed that the country’s crypto coin ‘Sango Coin’, which was launched in July last year, will be the next-generation currency for the country and will be a gateway to the country’s natural resources.

He said that Sango Coin is part of the CAR’s vision to have an integrated capital market that could stimulate commerce and sustain growth. He emphasized the need for financial inclusion and the need for the country’s citizens to easily have access to cryptocurrencies with smartphones.

Explaining the project’s benefits, he also stated that the citizens will gain at every level, as they will live in a country in full economic development, which means employment and prosperity. Moreover, they will benefit from virtual transactions, which in contrast to traditional banking, have the advantage of rapid access, fast execution, lack of bureaucracy, and low cost. 

“For us, a formal economy is no longer an option,” he emphasized.