According to the President of Central African Republic (CAR), Faustin-Archange Touadera, CAR intends to tokenize its mineral resources just over a month since adopting bitcoin as its legal currency.
Tokenization is the process of converting something of value into a digital token that’s usable on a blockchain application. Assets tokenized on the blockchain come in two forms:
- They can represent tangible assets like gold, real estate, and art, or
- Intangible assets like voting rights, ownership rights, or content licensing
Practically anything can be tokenized if it is considered an asset that can be owned and has value to someone and can be incorporated into a larger asset market.
In his statement, the President indicates that they have asked Parliament to prepare new strategy to create investment opportunities in the country’s economy.
“We are giving everyone access to the riches of our land. In other words, we are transforming them into equally valuable and important digital assets through an unprecedented new administrative and economic movement.”
– President, Central African Republic (CAR)
Tokenization of mineral resources is part of the country’s project Sango which seeks to create a a legal Bitcoin and cryptocurrency hub.
Specifically, Sango aims to:
- Institute a ‘cryptocurrency economic zone’ in the Sango Island where users will be able to propose, view, and contribute to its future developments
- ‘Facilitate land acquisition in bitcoin for investors worldwide.”
- ‘Create a Digital National Bank.’
- ‘Fully support’ access and ‘allocation of the country’s natural resources such as gold, diamonds, uranium, lithium and oil to crypto projects.’
- Build the Sango crypto island that will be declared a crypto economic zone and the first island in the metaverse backed by reality
However, the World Bank, which provided a grant that CAR is directing towards the project, has scoffed at the idea, terming it ‘physically impossible’ to fund the project.
In addition to petroleum, CAR possesses other mineral deposits including diamonds, copper and rhodium. The country’s natural resources also include gold, limestone, cobalt, and manganese among others.
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