Why Central African Republic’s Crypto Adoption Faced Allegations of Elite Capture and Criminal Influence

The Central African Republic’s experiment with cryptocurrency adoption has drawn sharp criticism from international researchers, who argue that the initiative benefited political elites and exposed the country to criminal networks rather than improving financial inclusion. A new report claims that Bitcoin adoption and state-backed crypto projects failed to address the country’s economic realities and instead deepened governance risks.

What Happened?

A report released by the Global Initiative Against Transnational Organized Crime (GI-TOC) has raised concerns about how cryptocurrency was introduced and managed in the Central African Republic (CAR). Titled Behind the blockchain: Cryptocurrency and criminal capture in the Central African Republic, the report examines the country’s decision to adopt Bitcoin as legal tender in 2022, alongside later initiatives such as Sango Coin and the CAR memecoin.

According to the researchers, these policies were rolled out in a country with limited electricity access, weak internet coverage, and minimal regulatory oversight. GI-TOC noted that only a small fraction of the population has reliable access to power or mobile connectivity, making broad participation in crypto-based programs unrealistic.

The report also criticized a law passed in July 2023 that allows the tokenization of national resources, including gold, oil, timber, and land. Researchers warned that such measures could undermine state sovereignty by opening critical assets to external influence without adequate safeguards.

Why This Matters for the Crypto Market

The findings highlight broader risks associated with crypto adoption in fragile or low-income economies. While digital assets are often promoted as tools for financial inclusion, the report suggests that without infrastructure, education, and governance frameworks, such initiatives can disproportionately benefit insiders.

For the crypto market, the CAR case underscores the importance of regulatory clarity, transparency, and realistic implementation. It also raises questions for investors and policymakers about how state-backed crypto projects are structured, especially in regions with weak institutions. The report argues that crypto adoption, when misaligned with local conditions, can become a vehicle for elite capture rather than economic development.

Market Reaction

The CAR’s crypto projects have shown limited traction in markets. Sango Coin, launched in 2022 as a flagship initiative to attract investment and tokenize resources, reportedly sold less than 10% of its intended supply, according to the report.

Meanwhile, the CAR memecoin experienced extreme volatility and technical problems. Data from CoinGecko shows the token is trading near $0.004, down more than 90% over the past year. These outcomes have reinforced skepticism among market participants about the viability of state-backed crypto experiments in the country.

What Analysts Are Saying

GI-TOC researchers argue that the crypto initiatives were “fundamentally unrealistic” given local conditions. They pointed to low GDP per capita, limited electricity coverage, and low mobile phone penetration as structural barriers to meaningful participation.

The report also alleged that the initiatives were shaped by a narrow circle of political and business figures, some of whom have been linked in public records to controversial activities. At its most critical, the report claims the programs appeared designed to benefit insiders while increasing exposure to foreign influence and transnational crime.

While CAR officials have not issued a detailed response to the report, the country previously reversed its Bitcoin legal tender status in March 2023 after pressure from the International Monetary Fund and regional monetary authorities.

How CAR’s crypto projects progressed. Source: The GI-TOC

What’s Next?

The report is likely to intensify scrutiny of crypto policy in developing and conflict-affected states. International institutions and regional regulators may use the CAR experience as a cautionary example when assessing future crypto adoption proposals.

For the Central African Republic, the focus may shift back toward traditional financial reforms and infrastructure development. Any future crypto-related initiatives are expected to face closer oversight, both domestically and from international partners.

More broadly, the episode highlights that successful crypto adoption depends not just on technology, but on governance, infrastructure, and alignment with local economic realities.