The Central African Republic has revealed it will delay the launch of its cryptocurrency “Sango” until 2023, as stated on its official website and Telegram channel.
Moreover, the procedure which would have allowed coin investors to part ways with up to 5 percent of their coins has also been postponed. These tokens are currently frozen for 12 months and are unable to be traded.
Unfavorable Market Conditions Cause Sango Coin Launch to be Delayed
The project team has declared that these environment conditions make it difficult to launch a state-backed digital currency. Consequently, the launch has been postponed. The Central African Republic is the only country in Sub-Saharan Africa to pass legislation which recognizes Bitcoin as legal tender, and the industry has commended its ambition to further the development of blockchain technology.
Sango coin is anticipated to go live in the first quarter of 2023, once all conditions for a successful rollout have been set. Nevertheless, the country’s top judicial officers have denied a proposition which would have allowed crypto enthusiasts to obtain citizenship by investing $60,000 for Sango.
CoinGecko data has shown that, since reaching its peak in November 2021, the cryptocurrency market has lost more than $2 trillion. There has been an increase in interest rates and investor anxiety due to the collapse of several crypto companies, including the widely known trading platform FTX.
Sango Coin Aims for Full Adoption, But Faces Long Journey
The Central African Republic is eager to explore the potential of cryptocurrency and blockchain technology, yet there are still a few regulatory issues that must be resolved before they can make any meaningful advances. The launch delay is attributed to the unfavorable market conditions, which would have made it difficult for the launch to go off without a hitch.
In April 2021, the Sango Program was initiated with the purpose of generating around $1 billion within the next 12 months. This is in spite of the decline of international cryptocurrencies and the transparency concerns. Of the total amount raised, only $1.66 million was spent on coin purchases; the first goal of 7.9% was only 0.01% successful.
In light of the growing need for crypto assets in an era of unsteady market conditions, the IMF has advocated for stricter regulations in countries. They strongly back the Central African Republic’s move to grant digital currencies legal functionality which is the only one of its kind in Sub-Saharan Africa. In contrast, cryptocurrencies are strictly outlawed in Sierra Leone, Cameroon, Congo, Ethiopia, Tanzania and Lesotho.
Furthermore, Punch Newspapers, a prestigious Nigerian publication, discovered after speaking with Babangida Ibrahim, Chairman of the House Capital Markets Committee, that Nigeria is in the process of legalizing Bitcoin.
