Sango coin: Constitutional Court does not validate Touadéra's crypto project
Bitcoin and altcoins

Sango coin : Constitutional Court does not validate Touadéra’s crypto project

On Monday, the Constitutional Court in the Central African Republic ruled that the use of Sango Coin for the purchase of citizenship, e-residency and land as proposed by the government project to international investors is “unconstitutional”.

The Central African Republic will have to find other arguments to stimulate the adoption of the Sango Coin

A decision “without possible appeal” according to the Court, which thus responds to the demands of civil society. Short-circuited in its momentum, President Faustin-Archange Touadéra has reacted, seeking solutions to continue the project as originally conceived.

Last month, the government launched Sango Coin amid a sharp drop in Bitcoin prices and doubts about the viability of the project in a country poorly connected to the Internet and destabilized by conflict.

Sales of the initial $21 million offered have been slow, with just over 5% of the target purchased within hours of its launch on July 21.

The Central African Republic will have to find other arguments or make major changes in its legislation, to stimulate the adoption of the national Sango Coin, and attract Bitcoin enthusiasts to the country.

However, the government hoped to entice foreign investors by offering them citizenship “by locking in a fixed guarantee of SANGO Coins in the amount of $60,000 for a period of 5 years”; e-residency “by locking in a fixed guarantee of SANGO Coins in the amount of $6,000 for a period of 3 years”; and land ownership “by locking in a fixed guarantee of SANGO Coins in the amount of $10,000 for a period of 10 years. On this last point, Bangui was arguing its desire to “decentralize land ownership via Sango,” notes the cryptocurrency’s dedicated website.

The executive branch will therefore likely have to rethink the use of the Sango Coin, to comply with the legislation. The state-backed crypto, is based on a BTC sidechain, as Bitcoin has been legal tender in the country since April 21. The first public sale of the Sango Coin began on July 25, at a price of $0.10.

Despite the classic warnings from the International Monetary Fund after Bitcoin’s legalization, the cryptocurrency and the Sango Coin have the potential to turn around the country’s economy, whose Gross Domestic Product (GDP) has been steadily dropping since it peaked in the mid-1960s.

Rework its legislation

In a statement Tuesday night, the Renaissance Palace reacted. “The Presidency of the Republic notes with satisfaction that the decision of the highest court of the State in constitutional matters does not call into question Law No. 22 004 of April 22, 2022 governing Cryptocurrency in the Central African Republic,” said the office of the Head of State, insisting that the basic text of the Sango project “is declared consistent with the Constitution.

In summary, the Central African State stresses that the decision of the Constitutional Court is based on the fact that the sale of nationality, e-residence, land and natural resources via the Sango Coin “are not part of the national legal order, because not yet enshrined in legislative or regulatory texts. Bangui promises that it will “take all appropriate measures to avoid potential violations of the Constitution, as noted by the highest court of the land in constitutional matters, in the context of the implementation of the Sango project.

The Central African Republic will thus have to rework its legislation, if it wants to effectively become the crypto-phare of the African continent.

On Twitter, President Touadéra stated that the government’s development ambition does not deviate from its willingness to respect the legal and constitutional framework, stressing that his vision of the digital future “will bring prosperity, wealth and economic growth”.

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