In a surprising turn of events, Central African Republic (CAR) President Faustin-Archange Touadéra has launched a meme-coin, named $CAR, as an effort to raise global awareness about his country. This initiative, however, comes with a fair share of risks and controversy, given the unpredictable nature of meme-coins.
Central African Republic Meme-Coin
Meme-coins are digital assets created to capitalize on viral internet trends. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, they often gain value based on community enthusiasm rather than intrinsic utility. While some have achieved remarkable success, meme-coins are notoriously volatile, leading many investors to suffer significant losses.
Touadéra announced the launch of $CAR on his X (formerly Twitter) account over the weekend, declaring its initial success. However, shortly after its release, the value of the coin reportedly plummeted by up to 90%, raising concerns among investors and the crypto community.
CAR’s Previous Crypto Ambitions
This is not CAR’s first foray into the world of cryptocurrency. In 2022, it became the second country in the world, after El Salvador, to adopt Bitcoin as legal tender. The initiative, named Sango, aimed to attract foreign investment and promote economic development, particularly in the country’s gold and diamond-rich mining sector. However, Sango did not achieve its anticipated success, and its official website is no longer active.
At one point, foreign investors were offered citizenship for $60,000 worth of cryptocurrency, but the country’s top court later ruled this initiative unconstitutional.
An Experiment or a Potential Scam?
President Touadéra described $CAR as an “experiment” meant to unite people, boost national development, and put the country on the global stage in an innovative way. However, skeptics fear that the project could be a scam, given the history of failed or misleading crypto initiatives in various parts of the world.
Related: Belarus to Launch a National Cryptocurrency
Funds for Education and Development
Despite the controversy, Touadéra remains optimistic about the coin’s potential. He shared a video highlighting a deteriorating high school and stated that funds raised from the meme-coin would go toward its rebuilding and furnishing, ultimately improving students’ access to education and opportunities.
CAR remains one of the world’s poorest nations, with an ongoing civil war further exacerbating economic struggles. While cryptocurrency could offer innovative financial solutions, many argue that meme-coins are not a sustainable economic strategy.
A Global Trend in Politics and Crypto
Touadéra is not the only political figure venturing into the meme-coin space. Just before his inauguration last month, US President Donald Trump launched his own meme-coin, which initially skyrocketed in value, reportedly raising billions of dollars. However, as seen with many meme-coins, its value has since declined to a quarter of its peak.
The Uncertain Future of $CAR
As $CAR faces skepticism and volatility, only time will tell whether it becomes a unique financial success or another failed experiment in the world of cryptocurrency. While some see it as a bold attempt to revolutionize CAR’s economy, others fear it may leave investors with significant losses. The global crypto community will be watching closely to see how this initiative unfolds.
