Welcome Sango, Central African Republic Second Nation To Designate Bitcoin As Fiat Currency

Cryptocurrency is a new concept, often at loggerheads with the Central Banks. However, after El Salvador, the Central African Republic became the second nation to recognize bitcoin as a legal currency. This created a furor among cryptocurrency fans and provoked the IMF to issue a warning against the move.

Central African Republic is the first African nation to accept BTC as a legitimate currency and it intends to tokenize its gargantuan mineral resources via its very own SANGO digital currency.

Cryptocurrency is still a very nascent idea and is being opposed by the present financial regimens with all its lacunae and pitfalls. The price of Bitcoin rose dramatically in 2020 and 2021, but after that, cryptocurrency crashed, and most crypto assets have fallen and lost a major portion of their values. Today the crypto sector is a pale resemblance to its former self.

The Sango-Africa’s Native Cryptocurrency

The Sango Platform is a native coin of the Central African Republic (CAR), which will be unveiled on July 25. This was revealed in an e-mail sent to customers already pre-registered for the nation’s cryptocurrency proposal and obtained by The Block.

The e-mail also revealed that the Platform would act as a nodal point for public support, distribution, and crowdfunding schemes.

The Central African Republic (CAR) is initiating a CBDC or a national cryptocurrency initiative called Sango. It will fulfill its role as the ecosystem’s primary unit of exchange. The total number of coins is 21 billion.

What Is Sango Chain?

The White Paper of the Sango Genesis labels it as a private sidechain for bitcoin, much akin to Blockstream’s Liquid Network. The white paper also clarifies that it will function as a digital currency, but it will not settle transactions directly on the Bitcoin Platform. Still, it will function as a sidechain for bitcoin.

As per reports, there will be a twin-direction peg process that will afford built-in Bitcoin connectivity in the Sango Layer 2. The Central African Republic (CAR) bitcoin treasury will be under the control of a group of validators known as the Institutional Quorum.

Users will deposit bitcoin (BTC) onto the native coin’s sidechain, which will be designated as Sango bitcoin (s-BTC). Users can then exchange this s-BTC for SANGO, the national cryptocurrency platform’s official currency.