Central African Republic: Selected Issues

IMF Staff Country Reports, May 2, 2023

Source details

Canonical URL

Central African Republic: Selected Issues

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: May 2, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400239946.002

Scope and focus

• Selected Issues paper on the fintech and crypto assets in the Central African Republic (CAR).
• Examines CAR’s initial steps, including the 2022 crypto law and the launch of a digital coin named Sango and a namesake platform-ecosystem.

Key findings and developments

• CAR’s 2022 crypto law:
  • Created legal uncertainties at the Central African Economic and Monetary Community level.
  • Raised numerous concerns, though some of the most controversial provisions have been recently revised.
• Project Sango:
  • Authorities proceeded with the launch of a digital coin named Sango and a namesake platform-ecosystem with multifaceted features.
  • Only a limited amount of coins have been issued.
  • Other elements of the project have not been launched.
  • Attracted considerable interest for its potential to bring opportunities through digitization.
• Risk profile:
  • Project Sango raises complex risks spanning macro-fiscal and financial to financial integrity, governance, consumer protection and others.
  • The project appears too complex, creating interconnectedness between multiple sectors and private and public balance sheets in a manner that could raise systemic risks.
  • Points to the importance of reconsidering the existing blueprint.

Policy implications and recommendations (implicit from analysis)

• Reconsider the existing Sango blueprint to address complexity and potential systemic risks.
• Address legal uncertainties within the Central African Economic and Monetary Community framework arising from the 2022 crypto law.
• Weigh digitization opportunities against risks to macro-fiscal stability, financial integrity, governance, and consumer protection before scaling project elements.

Subject tags and keywords (as reported)

• Subject: Food security, Fuel prices, International organization, Monetary policy, Poverty, Price structures, Prices, Revenue administration, Technology, Virtual currencies
• Keywords: CAR authorities, cryptographic ambition, Food security, Fuel prices, fuel products, Global, import cost audit, Price structures, reforming fuel price, Sub-Saharan Africa, Virtual currencies

Content in this bundle

• Central African Republic: Selected Issues; IMF Country Report No. 23/156; April 18, 2023
  • Central African Republic: Selected Issues; IMF Country Report No. 23/156; April 18, 2023 (Markdown version)
  • Central African Republic: Selected Issues; IMF Country Report No. 23/156; April 18, 2023 (PDF)