Central African Republic’s Crypto Experiment Raises Risks to State Assets, Report Warns

The Central African Republic’s high-profile embrace of cryptocurrency is exposing the country to growing financial and governance risks, including the potential loss of strategic state assets to foreign criminal networks, according to a new report by the Global Initiative Against Transnational Organised Crime (GI-TOC).

CAR became Africa’s first country to adopt bitcoin as legal tender in 2022, a move championed by President Faustin-Archange Touadéra as a bold attempt to bypass traditional financial constraints and unlock new funding sources for development and infrastructure. But analysts now warn that weak oversight, limited transparency and poor regulatory safeguards have created vulnerabilities that could be exploited by illicit actors.

The GI-TOC report argues that CAR’s cryptocurrency initiatives are operating largely outside conventional financial controls, benefiting a narrow circle of insiders while creating channels for potential money laundering and asset stripping. These risks are particularly acute in a country rich in natural resources but constrained by fragile institutions and international financial isolation.

A senior government official, speaking anonymously, dismissed the findings as politically motivated, saying the crypto projects are designed to offer alternatives to a global financial system that has long restricted CAR’s access to capital. However, critics say the absence of basic safeguards undermines that argument.

Sango Coin and $CAR Under Scrutiny

The report focuses on two flagship initiatives: Sango Coin and the more recent $CAR token.

Sango Coin was launched as part of an ambitious plan to turn Bangui into a crypto-enabled hub, offering incentives such as e-residency, land ownership and even citizenship to foreign investors. The project quickly ran into legal trouble after the Constitutional Court blocked key provisions in 2022. Investor response was muted, with sales reaching just 10% of the targeted 210 million tokens, raising less than €2 million.

In April 2025, the project’s organisers announced a strategic “reset,” but provided little clarity on how previously raised funds would be managed or returned—further eroding confidence.

The second initiative, $CAR, a meme-style cryptocurrency launched earlier this year, was billed as a branding exercise to raise the country’s global profile and support development. The rollout was rocky, with the project’s website suspended hours after launch. While $CAR tokens have reportedly been used to purchase tokenised land, there is no verifiable evidence that proceeds have flowed into the national budget.

Minerals and Governance Concerns

The most serious concern flagged by GI-TOC relates to proposals to extend crypto schemes into mineral concessions, including diamonds, gold and oil. Without robust identity verification, transparency rules or anti-money laundering controls, the report warns such schemes could effectively allow strategic national assets to be transferred to transnational criminal networks under the guise of digital innovation.

For investors and policymakers across Africa, CAR’s experience underscores the risks of adopting frontier financial technologies without strong institutional frameworks. While cryptocurrencies can offer opportunities for financial inclusion and innovation, the report concludes that weak governance can quickly turn them into tools for exploitation—particularly in fragile states.

Source: The High Street Business