According to Reuters, the Constitutional Court of the Central African Republic (CAR) said there are those who buy citizenship, e-residency and land using the Sango digital currency supported by the government is unconstitutional because citizens have no market value. Earlier in July, CAR announced Sango crypto hub to attract global crypto talent and enthusiasts, boost Bitcoin (BTC) adoption and implementation of a new crypto regulatory framework. 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 buy citizenship in CAR for $60,000 in crypto, with the same amount of Sango tokens held as collateral and returned after five years. Additionally, e-residency can be purchased for $6,000 with Sango tokens locked in for three years. It is also possible to buy 250 square meters of land in CAR for $ 10,000 with Sango tokens back a decade later.
CAR said that each Sango token will be fractionally created by Bitcoin, which was adopted as legal tender in April. Each Sango token can be purchased for $0.10 during the first phase of the initial coin offering, with a target price of $0.45 in the final round. The total supply of tokens is 210 million. So far, less than 20 million Sango tokens have been claimed, and officials have extended the first cycle of the sale by about five weeks.
Wealthy investors usually sign up for second citizenship programs based on investment for business activities, tax mitigation and ease of travel. The Central African Republic’s Gross Domestic Product has been in steady decline since its peak in the mid-1960s. The passport now allows visa-free travel in 17 countries.