The Central African Republic’s top court has ruled that using government-backed cryptocurrency to purchase land, citizenship and “e-residency” goes against the country’s constitution.
As Reuters reported Monday (Aug. 29), the Central African Republic’s (CAR) Constitutional Court found those purchases were unconstitutional, saying that nationality does not have a market value and that residency requires a physical stay in the CAR.
The coin in question, known as Sango Coin, went on sale in June in the wake of a steep drop in cryptocurrency prices, despite doubts about the longevity of the project in the CAR, a country plagued by war and lacking in digital connectivity.
See also: Central African Republic Set to Start Crypto Sales
The Sango Coin project would let foreign investors buy citizenship for $60,000 worth of crypto — with the equivalent Sango Coins kept as collateral for five years. The Sango website says “e-residency” would sell for $6,000, held for three years.
People could also purchase a 250-meter square plot of land for $10,000, with their coins locked in for 10 years.
The CAR became the first African nation to make bitcoin legal tender in April — raising concern among crypto experts and prompting the International Monetary Fund to caution it was not a “panacea” for the region’s hardships. Two former CAR prime ministers have said the country should not adopt a cryptocurrency without the blessing of the Bank of Central African States, the region’s central bank.
As PYMNTS noted in July, President Faustin-Archange Touadera has said crypto can help foster financial inclusion in one of the world’s most immiserated countries.
Read more: Despite Downturns, Central African Republic President Champions Crypto
In May, Touadera spoke at a launch for the Sango crypto initiative, arguing that cryptocurrency is a viable alternative to the cost of traditional bank accounts.
“The alternative to cash is cryptocurrency,” Touadera said. “For us, the formal economy is no longer an option.”
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