PRESS RELEASE. Sango, the crypto initiative of the Central African Republic, has unleashed a wave of excitement in the crypto space, fueling curiosity and anticipation. Supported by a comprehensive legal framework, Sango will enable the creation of the digital and physical infrastructure that would aid its development. SANGO will be partially supported by Bitcoin, which means it will build on a solid foundation that already exists.
What does “backed by Bitcoin” really mean?
Let’s put the record straight: SANGO, the currency of the Sango sidechain, will be partially backed by Bitcoin, which in layman’s terms means that the Treasury of the Central African Republic will be made up of a Bitcoin reserve fund.
Historically, a country’s currency would have been backed by gold reserves, as was the case up until the Bretton Woods Agreement. Bitcoin is also known as digital gold, being the best store of value within the blockchain space. Therefore, Bitcoin is considered a commodity of great value and will be the intrinsic store of value of a currency. Sango will also be pegged to Bitcoin, which means anyone will be able to trade wrapped Bitcoin (s-BTC) in the Sango ecosystem.
As you may know, the 1970s had resulted in the US dollar depegging from gold, potentially causing an endless supply of money to be printed if needed. However, inflation had become a common problem that plagued traditional Fiat currencies. On the other hand, Bitcoin represents a decentralized currency, which is not bound to any central authority. So Bitcoin is the optimal solution for a digital store of value, allowing citizens to democratize money and currency.
Also supported by Bitcoin means it will be built on solid technical foundations and the world’s safest and most decentralized cryptocurrency network.
Through its established reputation, secure blockchain and unalterable public ledger, the Central African Republic has laid a solid foundation for improving the lives of its citizens by enabling access to financial services and ensuring fair and transparent distribution of wealth. Despite the way some people have seen the initiative, Sango will allow citizens to enjoy a modern and digital monetary system, with non-bank citizens having access to the global financial system.
Supported by the government of the Central African Republic
According to President Faustin-Archange Touadéra in the Sango Genesis event, “the Sango Coin will be the currency for the next generation”. This implicit sense of trust and security is an immediate result of its “Bitcoin-backed” element, which builds trust and accountability within the initiative. If having the support of the President and the Government wasn’t enough, building on the foundation of Bitcoin offers endless benefits, especially due to its decentralized nature and limited supply. These benefits include partial decentralization and the absence of de-pegging risk, the differentiation of SANGO from stablecoins and CBDCs, and ensuring that current monetary problems are overcome.
It has also been inferred that the population will have more to gain with Bitcoin as a digital store of value behind SANGO. Citizens will be given democratic control over the new digital monetary system, needing nothing more than a smartphone to make instant payments and receive money securely, finally eliminating the need for a traditional banking sector. There is already a broader vision behind SANGO, as the President puts it: “a common cryptocurrency and an integrated capital market that could stimulate trade and support growth.”
Despite its many detractors and doubters, SANGO has already attracted the attention of many prominent cryptographic figures, including CZ (Changpeng Zhao) and Michael Saylor, but also praise from other African countries exploring the possibilities of adopting a similar system.
It is clear that Sango has already produced a massive disruption, paving the way for further adoption of Bitcoin. It is an important step for cryptocurrencies, as they finally pave the way for a monetary revolution and allow people maximum control over their money.
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