Central African Republic Court Says New Citizenship Of $60,000 By Crypto Investment Program Is Unconstitutional

According to Reuters, the Constitutional Court of the Central African Republic (CAR) said Monday that the purchase of citizenship, e-residence and land using the government-backed digital currency Sango is unconstitutional due to the lack of market value in nationalities. Earlier in July, the CAR government unveiled its Sango crypto hub to attract global crypto talent/enthusiasts, boost Bitcoin adoption and implement new cryptocurrency regulatory frameworks. The Sango blockchain is built on top of the Bitcoin blockchain, similar to a layer 2 solution.

Part of the program includes a citizenship by investment program, where foreigners can effectively purchase citizenship in the CAR for $60,000 in crypto with an equivalent number of Sango tokens held as collateral and returned after five years. Likewise, e-residency can be purchased for $6,000 with Sango tokens locked for three years. It is also possible to purchase a 250-square-foot plot of land in the CAR for $10,000, returning Sango tokens ten years later.

The CAR government says each Sango token is fractionally backed by Bitcoin, which it adopted as legal tender in April. Each Sango can be purchased for $0.10 during the initial phases of the Initial Coin Offering (ICO), with a target price of $0.45 in the final round. The total stock of the token is 210 million. Less than 20 million Sango tokens have been claimed so far and officials have extended the first cycle of the sale by about five weeks.

Affluent investors typically enroll in investment-based second citizenship programs for business activities, tax relief, and convenience of travel. The Central African Republic’s gross domestic product has been declining steadily since its peak in the mid-1960s. The current passport allows visa-free travel in 17 of the world’s 198 countries.

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