C. African Republic's president calls cryptocurrency solution to financial exclusion

LONDON: Cryptocurrencies are the solution to financial exclusion in the Central African Republic, according to President Faustin-Archange Touadera on Sunday, citing the cost of opening bank accounts.

After it became the first African state to legal tender in April, the country hosted a launch event for the initiative Sango, which is an alternative to cash, according to Touadera. The formal economy is no longer an option for us. The move to adopt cryptocurrencies in a country where internet use is low and electricity unreliable has raised eyebrows among experts, puzzled lawmakers and residents, and has drawn words of caution from the International Monetary Fund.

The Sango coin, backed by the Central African Republic's National Assembly, was spearheaded by Touadera, who said the token would give access to the country's mountain of natural resources, including gold and diamonds.

The country's Sango website says it will facilitate the tokenisation of Central African Republic resources for worldwide investors. Sango Coin will be the currency of the new generation of the Central African Republic, according to Touadera.

The Central African Republic's enthusiasm for cryptocurrencies seems to have been diminished by recent losses in their values, with the price of cryptocurrencies falling over 58 per cent in the past three months, according to Refinitiv data.