CAR's Crypto Push Spurs Fears of Foreign Exploitation and Sovereignty Loss

The Central African Republic's (CAR) cryptocurrency initiatives have come under intense scrutiny as a new report warns that the country's aggressive foray into digital assets is exposing it to foreign criminal influence and threatening national sovereignty. The report, published by the Global Initiative Against Transnational Organized Crime (GI-TOC), highlights concerns that opaque crypto schemes are facilitating elite capture and increasing the risk of state assets being siphoned off to transnational criminal networks. These findings emerge just weeks before the CAR holds its presidential election on December 28, with President Faustin-Archange Touadéra seeking re-election after championing crypto as a tool for development.

Touadéra's administration has pursued a series of high-profile crypto projects, starting with the adoption of Bitcoin as legal tender in 2022. However, the move was later reversed under pressure from regional regulators and the IMF. The government then launched Sango Coin, a national cryptocurrency, and more recently introduced a meme-based token known as $CAR, both of which have drawn criticism for their lack of transparency and real-world economic impact according to the report.

The Sango Coin project, which promised large-scale infrastructure development and investment opportunities, failed to attract significant participation, selling less than 10% of its target tokens and raising under 2 million euros.

The $CAR meme coin, introduced in early 2025, faced its own set of challenges, including a chaotic launch, domain suspension, and technical irregularities. The government has since used the token to tokenize land in the capital city of Bangui, but there is no clarity on how these sales have benefited the national budget according to the report. Critics argue that these initiatives are more aligned with the interests of foreign investors and transnational criminal actors than with the needs of the country's impoverished population. With less than 15% of the population having access to electricity and minimal mobile connectivity, meaningful participation in these crypto projects is nearly impossible for most CAR citizens according to the report.

Risks to Sovereignty and Financial Security

The GI-TOC report underscores how the CAR's crypto schemes lack basic safeguards against money laundering and fraud, leaving the country vulnerable to exploitation. The tokenization of natural resources-such as land, diamonds, and gold-without proper oversight raises concerns that these assets could be auctioned off to criminal networks. The report also highlights the involvement of shadow networks and foreign actors with histories of fraud in promoting the government's crypto agenda, further deepening fears of state capture according to the report. These issues are compounded by the country's weak regulatory infrastructure and political instability, which have long hindered effective governance according to the report.

The CAR government has dismissed the report as an effort to discredit its administration. A senior official, speaking anonymously, defended the crypto projects as necessary alternatives to the "monopoly of banks" and tightening international financial regulations. However, the GI-TOC argues that these initiatives are not alternatives to traditional finance but rather opaque mechanisms that bypass them, offering little tangible benefit to the population. Analysts warn that as the government plans to expand crypto-based tokenization to mineral concessions, the risk of losing control over strategic national resources increases significantly according to the report.

What This Means for Investors and International Watchdogs

For investors and global financial institutions, the CAR's crypto experiments represent a high-risk environment. The volatility of meme coins like $CAR, combined with the lack of transparency in tokenized asset sales, raises questions about the legitimacy of these investments. International watchdogs, including the IMF and regional banking regulators, have already expressed concerns over the country's crypto policies, with some urging stronger oversight and clearer legal frameworks. The GI-TOC has called for improved transparency, public education, and international cooperation to mitigate the risks of financial abuse and loss of sovereignty in the CAR according to the report.

As the CAR moves closer to its election, the outcome of these crypto initiatives remains uncertain. Whether the government will strengthen its regulatory framework or continue promoting opaque schemes will determine how the country is perceived by international investors and financial institutions. For now, the report serves as a stark reminder of the dangers associated with poorly designed cryptocurrency ventures in politically unstable and economically fragile regions according to the report.