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The first digital money system built on Bitcoin – Press release Bitcoin News
press release
PRESS RELEASE. Sango, the Central African Republic’s crypto initiative, has set off a wave of excitement in the crypto space, fueling curiosity and anticipation. Supported by a comprehensive legal framework, Sango will enable the creation of both the digital and physical infrastructure that will support development. SANGO will be partially backed by Bitcoin, meaning it will build on an already existing strong foundation.
What exactly does “backed by Bitcoin” mean?
Let’s clear things up: SANGO, the coin of the Sango sidechain, will be split backed by Bitcoin, which simply means that the Central African Republic treasury will consist of a Bitcoin reserve fund.
Historically, a country’s currency would be backed by reserves of gold, as has been the case until the Bretton Woods agreement. Bitcoin is also known as digital gold, and is the best store of value within the blockchain space. Thus, Bitcoin is seen as a highly valued commodity, and will be stored by the intrinsic value of a currency. Sango will also be linked to Bitcoin, meaning that anyone will be able to operate with wrapped Bitcoin (s-BTC) in the Sango ecosystem.
As you may know, the 70s had brought the depegging of the US dollar from gold, allowing an endless supply of money to potentially be printed if necessary. Nevertheless, inflation had become a common problem plaguing traditional fiat currencies. On the other hand, Bitcoin represents a decentralized currency, which is not tied to any central authority. Thus, Bitcoin is the optimal solution for a digital store of value, allowing citizens to democratize money and currency.
Also backed by Bitcoin means it will build on the strong technical foundation and the most secure and decentralized cryptocurrency network in the world.
Through its established reputation, secure blockchain and public, immutable ledger, a strong foundation is laid for the Central African Republic in improving the lives of its citizens by providing access to financial facilities and ensuring a fair and transparent distribution of wealth. Despite how some people have viewed the initiative, Sango will allow citizens to enjoy a modern and digital money system, with unbanked citizens gaining 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 of the next generation”. This implied sense of trust and security is an immediate result of its “backed by Bitcoin” element, which creates trust and reliability in the initiative. If having the support of the president and the government wasn’t enough, building on the foundation of Bitcoin offers endless benefits, mainly due to its decentralized nature and limited supply. These benefits include partial decentralization and no risk of de-pins, distinguishing SANGO from stablecoins and CBDCs and ensuring that current monetary problems will be overcome.
It has also been suggested that the population will have the most to gain with Bitcoin as the digital store of value behind SANGO. Citizens will be empowered with democratic control over the new digital money system, needing nothing more than a smartphone to make instant payments and receive money securely, ultimately removing 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 can stimulate trade and sustain growth.”
Despite its many critics and doubters, SANGO has already attracted the attention of many key crypto figures, including CZ (Changpeng Zhao) and Michael Saylor, but also praise from other African countries that are exploring the possibilities of adopting a similar system.
It is clear that Sango has already produced a massive disruption, leading the way for further adoption of Bitcoin. It’s a big step for cryptocurrencies as they finally lead a monetary revolution and allow people to have full control over their money.
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