Earlier this year, the Central African Republic (CAR) became the second nation to adopt Bitcoin as legal tender. Furthermore, the Central African Republic is planning on taking their blockchain endeavors to the next level, becoming the first nation to tokenize its natural resources.
Could The Central African Republic’s Plan Work?
President Touadera has already expressed his optimism for the future possibilities this decision could create for The Central African Republic, such as new jobs, global trade opportunities and foreign investment.
Despite its history of military conflict and political dispute, The Central African Republic possesses an abundance of natural resources, such as fertile land, minerals, clean water and livestock. Minister of State Obed Namsio has said, “We are giving everyone access to the riches of our land. In other words, we are transforming them into equally valuable and important digital assets through an unprecedented new administrative and economic movement.”
Skeptics Cast Doubt on The Central African Republic’s Blockchain Plans
Still, Major economic institutions of power have expressed scepticism over The Central African Republic’s plans. The International Monetary Fund (IMF) clarified its stance, stating that the program had no chance of success. Even The World Bank has distanced itself from The Central African Republic’s new projects.
Others have said that the Central African Republic should focus less on blockchain technology and more on solving the problems within its borders for generations; such as homelessness, hunger, disease, and a lack of job and education opportunities.
The Future of Decentralized Finance
As the first nation to tokenize its natural resources, The Central African Republic will act as a proof of concept for what a future in The Metaverse could look like. But will The Central African Republic be as successful as they seem to believe? Maybe not, but it will be interesting to see what happens.