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From Poverty to Profit: Central African Republic’s Bold Leap into Meme-Coin with $CAR

February 15, 2025
Smart Money

Central African Republic Launches Meme-Coin in Effort to Elevate National Profile

Bangui, Central African Republic — President Faustin-Archange Touadéra has announced the launch of a new meme-coin, dubbed $CAR, in a move aimed at increasing the visibility of the Central African Republic (CAR) on the global stage. With CAR consistently ranked as one of the poorest nations in the world, the initiative represents an experimental approach to leverage digital currency in hopes of fostering national development.

The Concept of Meme-Coins

Meme-coins are cryptocurrencies inspired by internet memes and trends, encouraging fans to buy and trade them based on their popularity rather than inherent value. While they can gain traction quickly, leading to potential profits, these coins are also notorious for their extreme volatility. The value of Touadéra’s $CAR mood significantly dropped by as much as 90% shortly after its launch, according to cryptocurrency tracking websites.

Previous Crypto Ventures

This latest endeavor follows CAR’s 2022 decision to adopt Bitcoin as legal tender, making it the second country in the world, after El Salvador, to do so. The initiative, branded as Sango, aimed to attract foreign investment specifically into the nation’s mining sector, given its wealth of natural resources, including gold and diamonds. Although it promised opportunities for economic growth, the Sango project has faced significant setbacks, with its official website currently inactive and many of its planned benefits unrealized.

One controversial aspect of the Sango initiative was its proposal to grant foreign investors citizenship for a donation of $60,000 in cryptocurrency. This plan, however, was subsequently deemed unconstitutional by the country’s highest court.

President’s Vision for $CAR

In a statement via his social media platform X (formerly Twitter), President Touadéra characterized the launch of the meme-coin as an “experiment” that could unite the nation and elevate its profile internationally. He emphasized the project’s potential to support national development and improve the lives of citizens. In his remarks, he expressed gratitude to those who believed in his vision and shared a video highlighting the dire condition of a local high school, asserting that the proceeds from the meme-coin would play a crucial role in the reconstruction and furnishing of the facility, ultimately benefiting students and their futures.

Concerns and Critiques

Despite the optimistic outlook from the government, skepticism surrounds the initiative. Critics have raised concerns that the meme-coin could resemble a speculative venture or even a scam, given the inherent risks associated with such digital currencies. The turbulent history of meme-coins serves as a cautionary tale; while they can yield rapid financial returns, many investors have also experienced significant losses. Notably, former US President Donald Trump launched a meme-coin shortly before his inauguration, which initially surged in value but later saw a dramatic decline in worth, dropping to only a fraction of its peak.

A Country in Crisis

The Central African Republic faces ongoing challenges, including a protracted civil war that has severely impacted its economy and social fabric. With critical infrastructure in disrepair and a population grappling with poverty, the future of the national economy remains uncertain. As the nation navigates this complex landscape, President Touadéra’s $CAR meme-coin represents not only a bold gamble on digital currency but also an attempt to build a future for a country striving for stability and growth.