After accepting bitcoin (BTC) as legal tender, the Central African Republic decided to create the Sango sidechain and cryptocurrency. The goal of the Sango project is to remove the limitations of the Bitcoin (BTC) blockchain and serve the needs of the Central African government.
Sango stands out among CBDCs
According to an August 14 post by the project team, Sango’s new cryptocurrency is “already changing what it means to be a government-backed cryptocurrency.” “A first-of-its-kind cryptocurrency harnesses the power of the Bitcoin blockchain to create a digital economy. You should know that the Sango sidechain offers various benefits of the Bitcoin (BTC) network. At the same time, it was designed to fill in the gaps in this block chain. Sango meets these criteria by offering more than state-backed cryptocurrencies usually offer.
To this end, the Sango cryptocurrency should be more scalable through the use of smart contracts. It also offers more privacy and programmability. It contributes to increasing the speed of transactions in the Bitcoin network by managing part of its load. What’s more, Sango’s sidechain has been designed in such a way that it doesn’t suffer from congestion issues like its main blockchain. Thus, this cryptocurrency facilitates transactions, which also become cheaper on the Bitcoin network.
The functioning of the Sango cryptocurrency is controlled by the institutional quorum of the Central African Republic. This quorum is constituted by the president, ministers and members of the National Assembly democratically elected to fulfill this role. Despite this control, the purchase of this cryptocurrency is decentralized, which cannot be said about CBDCs issued by central banks.
The Central African Republic wanted to create a more secure and citizen-friendly monetary system with Sango. She is aware of the fact that the reach of digital assets transcends borders. Thanks to them, international exchange becomes easier and faster.
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