Central African Republic's Crypto Push: A Tool for Elite Control and Criminal Networks

The Central African Republic’s (CAR) move toward cryptocurrency has strengthened the grip of the elite and exposed the nation to foreign criminal enterprises, as highlighted in a recent report by the Global Initiative Against Transnational Organized Crime (GI-TOC).

Key Takeaways

The GI-TOC’s report criticizes CAR's adoption of cryptocurrency, suggesting it has primarily benefited foreign investors and local elites rather than the vulnerable population.
Despite CAR's initial push to embrace Bitcoin as legal tender in April 2022, the country reversed this decision in March 2023 due to external pressures.
The report emphasizes that the majority of CAR’s citizens lack the infrastructure or means to meaningfully participate in cryptocurrency activities.
Major crypto projects in CAR, such as Sango Coin and the CAR memecoin, have struggled significantly, failing to achieve their targets.

Central African Republic's Crypto Push: A Tool for Elite Control and Criminal Networks

Overview of the Report

In its analysis titled “Behind the Blockchain: Cryptocurrency and Criminal Capture in the Central African Republic,” researchers indicated that the country’s ventures into cryptocurrency—ranging from adopting Bitcoin as legal tender to initiating Sango Coin and a local memecoin—were executed within a fragile economic framework, characterized by limited electricity, internet access, and oversight.

The report emphasized that “An impoverished population, exposed to mass executions, torture, and gang rape, with limited access to electricity, mobile phones and the internet, cannot engage in crypto investments in any meaningful way.” It argued that these initiatives seem more aligned with the interests of foreign investors than the needs of local residents.

Moreover, the report criticized a controversial law enacted in July 2023 that allowed for the tokenization of the country’s national resources, including oil, gold, timber, and land. This law has raised concerns regarding the potential erosion of the nation’s sovereignty.

CAR's Shift on Bitcoin Legality

Initially, in April 2022, CAR adopted Bitcoin as legal tender, positioning itself as the second nation to do so after El Salvador. However, under pressure from regional monetary authorities and the International Monetary Fund (IMF), the legislation was repealed in March 2023.

The GI-TOC commented that this initiative was "fundamentally unrealistic." They pointed out that only 15.7% of the population has access to electricity, fewer than 40% hold mobile subscriptions, and with a GDP per capita of just $467.22, most citizens lack the necessary infrastructure and resources to engage effectively in digital currency trading.

Progress of CAR's Crypto Projects

Lack of Success in Crypto Initiatives

The GI-TOC also observed the lack of success in CAR’s cryptocurrency projects. In 2022, the launch of Sango, which focused on tokenizing natural resources and attracting investments, did not meet its expectations as it sold less than 10% of its intended supply.

Another significant endeavor was the CAR memecoin, which experienced extreme price fluctuations and faced technical challenges. As of now, CAR is trading at approximately $0.004105, having plummeted over 93% in value throughout the past year.

Overall, the report suggests that CAR's cryptocurrency initiatives are primarily designed to enrich a small group of insiders while creating new pathways for foreign influence and organized crime, to the detriment of the broader population.

For more insights into the evolving cryptocurrency landscape, stay tuned for upcoming articles and analyses.