The Central African Republic has secured a $190 million loan from the IMF. When will the Sango Coin project supported by Bitcoin be launched?

In April last year, the Central African Republic (CAR) announced Bitcoin as its legal tender and received a $190 million loan from the International Monetary Fund (IMF) as it is on the brink of a humanitarian crisis, facing severe food security issues and poor healthcare.

Central African Republic Sango Coin Project

The Central African Republic is located in the center of the African continent, formerly a French colony that gained independence in 1960. Despite having abundant mineral and natural resources, the Central African Republic has a low GDP per capita of only $527 due to years of civil war and armed conflicts.

In an effort to introduce digital currency applications for inclusive finance, the Central African Republic announced the launch of the digital currency project Sango Coin last year. It is not a central bank digital currency (CBDC) backed by fiat currency, but a new digital currency that claims to be partially backed by Bitcoin. The project was initially scheduled to launch in the third quarter of last year but has been repeatedly delayed.

Previously, there was a comprehensive introduction to it, similar to the model of ICO initial token issuance, which appeared to involve cryptocurrency communities in a country's development. For more information, please see: Developing a Country with Cryptocurrency? Central African Republic, ranked 165th in GDP, issues Sango Coin, what does Sango use to exchange with you

IMF's View on the Central African Republic

While the IMF expressed concerns about El Salvador, the first country in the world to use Bitcoin in February this year, maintaining its opposition to Bitcoin as legal tender, the outlook for the Central African Republic in 2023 seems more optimistic. The IMF's report indicates that due to base effects and policy adjustments, real GDP growth is expected to rebound to 2.2%, with average inflation projected at 6.3% in 2023.

However, the IMF also highlighted downside risks for the Central African Republic and arranged a 38-month loan to address the country's long-term balance of payments needs.