CAR Crypto Schemes Spark Crime Fears as Election Nears

The Central African Republic (CAR) is facing growing scrutiny over its embrace of cryptocurrency initiatives, with a new report warning that opaque digital asset schemes could expose state resources to foreign criminal networks. The report, published by the Global Initiative Against Transnational Organized Crime (GI-TOC), highlights concerns that these projects, while intended to fund development and infrastructure, lack the transparency needed to prevent illicit activity. President Faustin-Archange Touadéra, who has championed crypto since 2016, is seeking a third term in the December 28 election, adding to the political weight of these developments.

CAR became the first African nation-and second in the world-to adopt Bitcoin as legal tender in 2022. The move was promoted as a way to bypass traditional financial systems and attract non-traditional investors. However, the GI-TOC report argues that the country's fragile institutions and weak oversight increase the risk of exploitation by organized crime. The report also points to the limited digital infrastructure in CAR, where less than 16% of the population has access to electricity and internet penetration remains low.

The report's findings have been contested by senior government officials, who dismiss the claims as an attempt to discredit the administration. A CAR official described the crypto initiatives as a necessary alternative to the "monopoly of banks" and said they aimed to foster economic independence. However, the lack of concrete evidence linking the schemes to national development projects has raised questions about their efficacy and governance.

Why the Standoff Happened

The GI-TOC report focuses on two flagship crypto projects: Sango Coin and the $CAR meme coin. Sango Coin was launched in 2022 to transform Bangui into a "futuristic city" by offering citizenship, e-residency, and land to investors. However, the project has faced significant legal and operational hurdles. The Constitutional Court blocked several incentives in 2022, and the initiative raised less than €2 million by the end of its first year. In April, the Sango Project announced a "new direction" without providing details, leaving the fate of existing investments uncertain.

The $CAR meme coin, launched in February 2025, has also drawn criticism. Meme coins are typically volatile and driven by speculative demand, raising concerns about their long-term value. The $CAR launch was marred by technical issues, including the suspension of its domain hours after the project began. By November 2025, only 122 tokenized land plots had been sold for a total of $38,000, with no evidence that the proceeds were used for national development.

The report warns that plans to extend these schemes to mineral concessions could further expose CAR's diamonds, gold, and oil to illicit actors.

Risks to the Outlook

The report's concerns are amplified by CAR's history of political instability. Since independence in 1960, the country has experienced repeated coups, rebellions, and armed conflict. A weak state presence in large parts of the country has historically allowed diamond and gold smuggling to finance armed groups. The GI-TOC warns that the lack of identity verification and anti-money laundering safeguards in the crypto initiatives could enable similar abuses through digital channels. Without stronger oversight, the report argues, these schemes risk deepening governance and security vulnerabilities rather than delivering the promised economic transformation.

The CAR government's push into the crypto space has also drawn attention from international institutions and investors. While Touadéra's administration sees digital assets as a path to economic independence, critics argue that the projects lack both public support and technical feasibility in a country where most citizens lack access to basic digital infrastructure. The report's release comes at a critical time, as the country prepares for an election in which the president is expected to seek a third term.

What Analysts Are Watching

The GI-TOC and other observers are closely monitoring whether the CAR government will implement stronger regulatory frameworks to safeguard state assets. The report warns that plans to expand crypto-based transactions to mineral concessions could be particularly dangerous, given the region's history of resource-driven conflict. Without transparency and accountability mechanisms, the risk of state assets being captured by foreign criminal networks remains high. Analysts are also watching how international scrutiny evolves as the election approaches, particularly if the government continues to prioritize crypto over more conventional development strategies.

With CAR's GDP per capita at just $467 and limited financial oversight in place, the potential fallout from mismanaged crypto projects is significant. If the government fails to address the concerns raised by the GI-TOC, the country could face increased risks to its sovereignty and long-term economic stability. For now, the debate over the role of cryptocurrency in CAR's development remains deeply contested, with implications that extend far beyond the digital frontier.