Central African Republic's Sango Coin and the Risks of Foreign-Centric Crypto Nationalism: Assessing the Geopolitical and Economic Feasibility of Resource Tokenization in Underdeveloped Markets

The Central African Republic (CAR) has emerged as a bold experiment in crypto-nationalism, launching the Sango Coin in 2022 as part of a sweeping digital-first economic strategy. The project, which aims to tokenize the country's natural resources and attract foreign investment through blockchain-based citizenship programs, has drawn both fascination and scrutiny. While the CAR government envisions Sango Coin as a tool to bypass traditional financial systems and unlock $1 billion in investment, the initiative has faced delays, legal challenges, and skepticism from international institutions like the IMF. This analysis examines the geopolitical and economic feasibility of resource tokenization in underdeveloped markets, using the CAR's Sango Coin as a case study to highlight the risks and opportunities of foreign-centric crypto nationalism.

The Sango Coin: Ambition vs. Reality

The CAR's Sango blockchain operates as a Bitcoin Layer-2 solution, positioning itself as a decentralized alternative to traditional monetary systems. The government's initial plan included tokenizing gold, lithium, and other minerals, alongside a controversial citizenship-by-investment program requiring $60,000 in Sango Coins. However, the project has been plagued by delays-its public listing was postponed from late 2022 to Q1 2023, with the Constitutional Court striking down the citizenship program in September 2022. Despite these setbacks, the CAR persists, recently introducing a $CAR meme coin in 2025, which has faced volatility and technical irregularities.

The CAR's approach reflects a broader trend of underdeveloped nations leveraging blockchain to bypass traditional financial infrastructure. Yet, the lack of robust regulatory frameworks, weak governance, and limited technological infrastructure have hindered progress. For instance, the CAR's tokenization of land and resources has been criticized for favoring elite interests over local communities, with minimal public participation. This raises questions about whether such projects truly empower local economies or merely create speculative opportunities for foreign investors.

Geopolitical Implications of Crypto-Nationalism

The CAR's Sango Coin is part of a global shift toward crypto-nationalism, where nations use digital currencies to assert financial sovereignty and challenge U.S.-centric monetary systems. Similar initiatives include China's digital yuan and the Gulf Cooperation Council's exploration of blockchain-based financial systems. However, the CAR's approach is uniquely foreign-centric, relying on attracting external capital rather than building domestic financial resilience.

This strategy carries significant geopolitical risks. For example, the IMF has warned that adopting Bitcoin and Sango Coin as legal tender could expose CAR to financial instability and regulatory arbitrage. Additionally, the tokenization of natural resources-such as gold and uranium- risks entrenching dependency on foreign investors, who may prioritize profit over sustainable development. The CAR's experience mirrors concerns raised in other underdeveloped markets, where tokenization projects often lack transparency and accountability, potentially enabling corruption or exploitation.

Economic Feasibility and Comparative Case Studies

While the CAR's Sango Coin has struggled to attract investment, other underdeveloped markets have experimented with tokenization in more structured ways. For example, South Africa's Die MOS Inisiatief raised R100 million via a tokenized corporate bond in 2024, with 65.5% of funds coming from retail investors. Similarly, Nigeria and Kenya are tokenizing real estate to improve liquidity and combat fraud. These cases highlight tokenization's potential to democratize access to capital but also underscore the need for regulatory clarity and infrastructure.

The CAR's lack of success contrasts sharply with these examples. Despite ambitious goals, the Sango project has attracted minimal investment, with only a fraction of intended tokens sold. This reflects broader challenges in underdeveloped markets, where weak institutions, limited internet access and energy constraints hinder adoption. For instance, the CAR's tokenization of mining and forestry assets has struggled to attract meaningful participation due to political instability and opaque governance.

Environmental and Social Risks

Tokenization of natural resources also carries environmental and social risks. In the CAR, energy-intensive mining operations-often powered by fossil fuels-have contributed to deforestation and greenhouse gas emissions. While blockchain can enhance transparency in supply chains, its implementation in underdeveloped markets often lacks the infrastructure to support sustainable practices. For example, the CAR's $CAR meme coin has raised concerns about speculative trading and environmental harm, given its volatility and lack of oversight.

Socially, tokenization projects in underdeveloped markets risk exacerbating inequality. In the CAR, land tokenization has been criticized for prioritizing foreign investors over local communities, with limited benefits for the population. This aligns with broader critiques of blockchain-based initiatives in resource-rich countries, where tokenization often reinforces existing power imbalances rather than redistributing wealth.

Conclusion: A Cautionary Tale for Investors

The CAR's Sango Coin illustrates both the allure and the pitfalls of crypto-nationalism in underdeveloped markets. While tokenization offers potential for financial inclusion and economic growth, its success depends on robust governance, infrastructure, and regulatory frameworks-elements the CAR lacks. For investors, the project serves as a cautionary tale: foreign-centric crypto initiatives in unstable markets carry high risks, including regulatory backlash, environmental harm, and social inequity.

As the global landscape of digital currencies evolves, the CAR's experience underscores the need for a balanced approach. Tokenization can unlock value in underdeveloped economies, but only if paired with transparency, sustainability, and inclusive governance. For now, the Sango Coin remains a symbol of ambition-and a reminder of the challenges that lie ahead.