Behind the blockchain: Cryptocurrency and criminal capture in the Central African Republic
Introduction: A Bold Crypto Experiment in Chaos
In a nation plagued by decades of conflict, poverty, and political turmoil, the Central African Republic (CAR) made headlines in 2022 by adopting bitcoin as legal tender—becoming only the second country in the world to do so after El Salvador. Under President Faustin-Archange Touadéra, the government rolled out ambitious cryptocurrency projects like Sango Coin and the $CAR meme token, promising economic revival, modernization, and financial inclusion. But behind the blockchain, a darker story emerges: one of opaque dealings, foreign influence, and potential criminal capture.
Today, we dive deep into how these initiatives unfolded against a backdrop of armed violence, shrinking civic space, and dire infrastructure deficits. Far from empowering citizens, CAR’s crypto push appears to have opened doors for elite profiteering and risky speculation. If you’re tracking cryptocurrency risks in Africa or the global clash between blockchain hype and harsh realities, this analysis is for you.
CAR’s Rocky Path to Crypto Adoption
The Central African Republic, one of the world’s poorest and most unstable countries, boasts vast natural resources like gold, diamonds, and timber. Yet, ongoing rebel insurgencies and governance failures have left over 50% of its 5 million people in poverty, with electricity access below 10% and internet penetration under 5%. Into this void stepped cryptocurrency advocates.
Bitcoin as Legal Tender: A Controversial First Step
In April 2022, CAR’s parliament passed a law making bitcoin official tender, mirroring El Salvador’s experiment. The government touted it as a hedge against hyperinflation and a gateway to global finance. International bodies like the IMF and World Bank slammed the move, citing money laundering risks and financial instability. Even CAR’s Constitutional Court struck it down initially.
By late 2022, amendments revoked bitcoin’s legal tender status but paved the way for blockchain-based tokenization of land and resources. This shift allowed digital assets to underpin real-world ownership—without the regulatory guardrails seen in mature markets.
Sango Coin: Promises of a ‘Crypto City’
Launched in July 2022, Sango Coin was the crown jewel of CAR’s crypto vision. Marketed via glossy roadshows in Dubai and Europe, it promised:
- E-residency for foreign investors.
- Land plots in a futuristic ‘Crypto City’ near Bangui.
- Stakes in mining, forestry, and infrastructure projects.
The presale aimed to raise $1 billion, but it flopped—selling just 2% of tokens. Blockchain explorers reveal minimal trading volume and stalled development. Promised airports, hotels, and tech hubs? Vaporware. Investors lured by yields up to 20% were left holding bags of worthless tokens.
The $CAR Meme Coin Debacle
Fast-forward to early 2025: Enter $CAR, a meme-inspired token hyped on X (formerly Twitter) and Telegram. Pegged to speculative land deals, it surged 1,000% in days before crashing amid rug-pull suspicions. Key red flags:
- Extreme volatility: From $0.01 to $0.50 and back to pennies.
- Technical glitches: Wallet drains and failed transactions reported widely.
- Opaque teams: Promoters linked to prior scams in DeFi circles.
$CAR enabled buying virtual land titles via unregulated DEXes, blending meme culture with real estate in a country where land disputes fuel half its conflicts.
Political Instability Fuels Crypto Opportunism
CAR’s crypto saga isn’t isolated—it’s intertwined with power consolidation. President Touadéra, re-elected amid fraud allegations, has leaned on Russian mercenaries (Wagner Group, now Africa Corps) for security, trading mineral concessions for protection. Crypto fits this pattern: a tool to monetize resources without traditional banks.
Foreign players abound. Dubai-based firms pitched Sango; anonymous devs pushed $CAR. Blockchain sleuths using tools like Chainalysis spot flows from sanctioned wallets and mixers, hinting at sanctions evasion. Individuals with fraud rap sheets—from Ponzi schemes to wash trading—pop up in promoter lists.
Risks of Criminal Capture in Weak Institutions
Why does this matter? In stable economies, crypto regs like KYC/AML curb abuse. CAR lacks them:
| Risk | CAR Context | Global Parallel |
|---|---|---|
| Opaque Flows | Token sales bypass central bank | Like Venezuela’s Petro |
| Speculative Land Grabs | Foreigners tokenize disputed plots | El Salvador’s Bitcoin City flop |
| Market Manipulation | Pump-and-dump via social media | Squid Game token scam |
| Sovereignty Loss | Resource control via smart contracts | Russia’s crypto sanctions dodge |
Blockchain analysis uncovers clusters: Wallets funding Sango linked to high-risk exchanges; $CAR liquidity pools drained by insiders. This isn’t inclusion—it’s elite capture, where a few profit while 70% of CAR lives on $2/day.
Lessons for Blockchain in the Developing World
CAR’s missteps echo wider pitfalls. El Salvador’s bitcoin bonds tanked; Nigeria’s eNaira struggles with adoption. Success stories like Kenya’s M-Pesa show mobile money works without crypto’s volatility.
Insights for policymakers:
- Build infrastructure first: No power, no blockchain.
- Enforce transparency: Public audits of token treasuries.
- Partner wisely: Vet foreign actors rigorously.
- Prioritize citizens: Focus on remittances, not memes.
Yet, blockchain’s potential endures—for secure aid distribution or transparent mining royalties—if governed right.
Conclusion: Beyond the Hype
Behind the blockchain in CAR lies a cautionary tale of cryptocurrency and criminal capture. What began as a modernization dream has morphed into a vector for abuse, underscoring crypto’s double-edged sword in fragile states. As regulators worldwide tighten rules post-FTX, CAR’s experiment warns: Innovation without oversight invites exploitation.
Will CAR pivot to sustainable blockchain use, or double down on memes? Watch this space. Share your thoughts below—what’s the future of national cryptos?
FAQs: Crypto in Central African Republic
Is bitcoin still legal tender in CAR?
No, revoked in 2022, but crypto trading persists unregulated.
What happened to Sango Coin?
Presale failed; project largely abandoned despite hype.
Is $CAR a scam?
Heavy red flags point to manipulation, but DYOR.
Can foreigners buy CAR land via crypto?
Yes, through tokenization platforms—high risk.
