One of the world’s poorest countries is considering tokenizing its fossil natural resources.
The President of the Central African Republic (CAR) announced the government’s intention to issue tokens backed by fossil natural resources. The project aims to attract international investment to the country.
Over 470 different minerals, including gold, iron, diamonds, copper, uranium, lithium, cobalt, manganese, rhodium and others, have been discovered during exploration work on the CAR territory. Hydrocarbon deposits of oil and lignite, among others, have been found.
The CAR leaders hope that natural resources will become the main driver of the country’s economic development. At the end of April 2022, the Central African Republic legalized Bitcoin as a means of payment, causing the World Bank’s concern. Tokenization of natural resources should be the country’s next step toward adopting blockchain technology.
We have already told you what asset tokenization is and how commodity-backed tokens work in our Academy section.
