Central African Republic to build tax-free crypto island by Benzinga
© Reuters. Central African Republic to Build a Tax-Free Crypto Island
The Central African Republic, the first country in Africa to be legal tender and second in the world after El Salvador, on Tuesday announced the construction of Sango, a crypto island to attract global crypto businesses and enthusiasts.
According to a 24-page document detailing the project’s goals, Sango will be declared a “Crypto Economic Zone” that will allow people to propose, view, and contribute to future developments of the crypto island, the first reality-backed island in the metaverse.
The initiative was launched by the National Assembly of the Central African Republic and supported by President Faustin-Archange Touadera.
According to the document, Sango Island seeks to tie the real world (real estate, condominium) to the representation of the metaverse, while adding additional layers for future expansion and allowing users to manage their NFTs in the metaverse in order to unlock additional features like market, ownership, funding and asset tokenization.
Sango will also allow NFT minting in the metaverse for an additional layer of commercial services.
Sango’s legal framework includes an electronic residency program, citizenship by investment, online business registration, and freedom from income and corporate taxes. The legal framework will be in place before the end of 2022.
Allocation of resources
The state will support access to the country’s natural resources such as gold, diamonds, uranium, iron ore, coltan, cobalt, nickel, lithium and petroleum.
CAR also plans to create a Bitcoin wallet for sending, receiving and storing (CRYPTO: BTC) that will be compatible with the Lightning Network, Bitcoin’s second layer protocol for cheaper and faster payments. The wallet will also be compatible with point-of-sale (PoS) for businesses to accept bitcoin payments and have an integrated accounting system.
The document also mentions plans to finalize the Central African Backbone (CAB) internet interconnection before the end of the year to fuel its “comprehensive digital transformation”, it said in the document.
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