World Bank Rains on Central African Republic’s Bitcoin Parade: Concerns Over ‘Sango’ Crypto Hub

World Bank’s Disapproval of CAR’s Bitcoin Embrace

The World Bank isn’t exactly throwing a parade in honor of the Central African Republic (CAR) adopting Bitcoin as legal tender. As the CAR president, Faustin-Archange Touadéra, officially rolled out this shiny new cryptocurrency policy, the World Bank waved a giant red flag, proclaiming: “Not on our watch!” It turns out that the financial giant is less than enthusiastic about CAR’s ambitions, especially in light of proposed projects like the Sango crypto hub.

Sango: CAR’s Ambitious Crypto Initiative

Launched at the end of April, Sango is touted as the nation’s maiden foray into the crypto realm—a legal haven for digital enterprises equipped with tantalizing incentives like zero corporate or income tax. Add in the allure of a virtual and physical “crypto island,” and one can see how this project might catch the eye of crypto enthusiasts. However, just because you can dream it, doesn’t mean you can fund it. The World Bank’s recent take on the matter makes this abundantly clear.

The Authoritative No from the World Bank

In a statement made to Bloomberg, a spokesperson for the World Bank informed the public: “Listen, folks, that $35 million grant for digitizing the public sector? Its connection to the cryptocurrency initiative is about as strong as my willpower around a box of donuts—nonexistent!” They firmly stated the grant was aimed at refreshing public financial management systems, not establishing a crypto utopia.

Concerns About Transparency and Stability

As if delivering a low-budget soap opera twist, the World Bank elaborated on its concerns regarding CAR’s crypto venture. They raised eyebrows over potential implications for financial inclusion and public finance, stating that it would be “physically impossible” for them to back the Sango project. Their sentiments mirrored those of Abbas Mahamat Tolli, the governor of the Bank of Central African States, who served up a scathing letter critiquing the CAR’s newfound love for Bitcoin.

The Road Ahead: Crypto vs. Traditional Currency

Despite the affection that cryptocurrency is currently basking in on the African continent—boasting a surprising adoption rate that surged over 2500% in 2021 according to some surveys—CAR’s situation paints a cautionary tale. With only about 7% of the population accessing the internet, one has to wonder how deep the crypto love really runs. Can a country plunge into the deep waters of digital currency without a strong network to support it? Only time, and possibly the World Bank’s subsequent warnings, will tell!