The World Bank opposes the Central African Republic’s legal tender trajectory for bitcoin
Despite the Central African Republic’s recent decision to legalise Bitcoin, the World Bank has raised caution over the country’s desire to establish a crypto centre.
Last week, the nation’s president tweeted that the government has established its first crypto initiative called “SANGO” to guide the country’s bitcoin strategy. This comes as a result of that announcement.
On Monday, President Touadera issued a statement saying that “an official economy is no longer an option,” and that TANGO’s debut was proof of that. We are unable to compete because of an opaque bureaucracy that stifles innovation.
On the SANGO website, it is stated that the plan was approved by the national legislature and backed by the CAR and the president. By the end of 2022, the programme plans to establish a “crypto economic zone” and “build a specialised legal framework for cryptocurrencies.”
On May 5, the World Bank authorised a $35 million development fund for the digitalization of the government. It is stated in the plan that “the world bank is not part of the crypto project,” but once it was suggested that CAR may utilise the allotted money to launch its crypto initiative, the global lender replied.
‘Sango: The First Crypto Initiative Project’ is not supported by the World Bank, which said in an email statement to Bloomberg that the $35 million digital governance loan was “not tied to any crypto projects.” Funding initiatives like digitising tax collecting and salary payment systems were designed to strengthen CAR’s public financial management system.
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