The Central African Republic (CAR) has launched a meme coin, $CAR, as part of an innovative effort to raise the global profile of one of the world’s poorest nations.
President Faustin-Archange Touadera announced the initiative on X (formerly Twitter) late Sunday, nearly three years after the country became the first in Africa and the second globally, after El Salvador, to adopt Bitcoin as legal tender.
Meme coins are cryptocurrency tokens inspired by internet memes or trends.
While they often gain popularity due to their viral nature, they are typically highly volatile and lack practical utility.
Meme coin trend
The launch of $CAR follows the recent trend of meme coins gaining traction in the crypto market, such as the Trump token launched by U.S. President Donald Trump, which briefly surged to a market value of over $14.5 billion before experiencing a sharp decline.
President Touadera described the $CAR meme coin as “an experiment designed to show how something as simple as a meme can unite people, support national development, and put the Central African Republic on the world stage in a unique way.”
- Despite being rich in gold and diamond reserves, CAR remains one of the world’s most impoverished and underdeveloped nations, plagued by years of rebel violence and economic instability.
- The CAR token was trading at $0.22 as of Monday morning, according to cryptocurrency price tracker CoinGecko.
- However, the initiative faced a minor setback when a dedicated X account created for updates and announcements about $CAR was suspended.
- Touadera assured the public that the government is working to restore the account as soon as possible.
CAR’s foray into meme coins builds on its earlier adoption of Bitcoin as a legal tender in 2022, a move that positioned the country as a pioneer in cryptocurrency adoption in Africa.
While the Bitcoin adoption faced criticism and implementation challenges, the launch of $CAR reflects the government’s continued commitment to leveraging digital assets for economic development and global visibility.
What you should know
While Nigeria is currently tinkering with crypto regulation through the Accelerated Regulatory Incubation Program (ARIP) of the Securities and Exchange Commission, the country’s first local stablecoin, cNGN, was officially launched on local exchanges this month.
cNGN, which touts itself as the first regulated stablecoin in Africa, is available for purchase on the two licensed digital asset exchanges in Nigeria: Quidax and Busha.
- Licensed individuals and corporations can also purchase the stablecoin directly from the issuer, according to the company’s website.
- As of February 5, cNGN had 4,400 tokens in circulation, with 13 holders and spread out across six blockchain networks, with the Bantu blockchain holding the lion’s share.
- cNGN is developed by the Africa Stablecoin Consortium, an industry organization whose members include Nigerian banks and fintech.
- It was first announced in January last year and was scheduled to launch in February. However, ASC postponed the launch, revealing that it had yet to obtain the required licenses from the Central Bank of Nigeria (CBN).
- ASC finally received the license from CBN last month. In its announcement, the organization pledged to keep working with the central bank and other watchdogs, including the SEC and the Nigerian Financial Intelligence Unit (FIU), to remain compliant.
