The President Of The Central African Republic Said Crypto Is Alternative To Cash. The President of the Central African Republic, Faustin-Archange Touadera recently reiterated his support for cryptocurrencies. Touadera said cryptocurrencies are the key to financial inclusion.
“The alternative to cash is cryptocurrency. For us, the formal economy is no longer an option,” Touadera was quoted as saying by Channel News Asia, Tuesday (5/7/2022).
This was stated by Touadera at the launch event of a crypto initiative organized by the country, after becoming the first African country to make Bitcoin legal tender in April.
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The step of crypto adoption in the Central African Republic had surprised various parties. This is because the use of the internet has not mushroomed in the country. In fact, the internet is one of the supporting infrastructure for crypto.
The Sango project, including Sango Coin, is backed by the National Assembly of the Central African Republic and spearheaded by Touadera, which says the token will provide access to the country’s natural resources, including gold and diamonds.
The country’s “Sango” website said it would “facilitate the tokenization of Central African Republic resources for investors around the world”.
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“The Sango Coin will be the currency of a new generation of Central African Republic,” Touadera said, without providing details.
The President Of The Central African Republic Said Crypto Is Alternative To Cash. The Central African Republic’s enthusiasm for cryptocurrencies seems unaffected by recent losses in its value, with bitcoin prices falling more than 58 percent in the past three months.
Previously, an increasing number of crypto companies were affected by the recent price decline. This time it’s the turn of crypto lender Vauld on Monday, July 4, 2022 local time to stop all withdrawals, trading and deposits on its platform. According to reports, the company is currently exploring potential restructuring options.
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Vauld CEO Darshan Bathija said in a blog post on Monday the company was facing “financial challenges” due to “volatile market conditions”.
“The financial difficulties of our key business partners are definitely affecting us, and the current market climate that has led to customers withdrawing more than USD 197.7 million (Rp 2.9 trillion) from the platform since June 12,” said Bathija as quoted by CNBC, Tuesday ( 5/7/2022).
The Singapore-based company said it was working with its financial and legal advisers to explore and analyze all possible options, including a potential restructuring option, that best protect the interests of Vauld’s stakeholders.
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Vauld’s move to halt recalls comes less than three weeks after CEO Bathija said the company was continuing to operate as usual despite volatile market conditions.
In a June 16 blog post, Bathija said withdrawals were “processing as usual and this will continue to happen in the future.”
However, Vauld has been the latest victim of the cryptocurrency price crash this year. Bitcoin had its worst quarterly performance since 2011 in the second quarter of 2022. Billions of dollars were erased from the cryptocurrency market value in a three month period.
Crypto lending companies like Vauld have faced liquidity problems. Celsius last month suspended recalls for customers citing “extreme market conditions.”
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Vauld said it was in discussions with potential investors in the company. The company said it had employed Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas, and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore, respectively.
The market crash has exposed flaws in a number of cryptocurrency projects and business models. Meanwhile, major cryptocurrency hedge fund Three Arrows Capital fell into liquidation after defaulting on a more than USD 660 million loan from Voyager Digital.
Previously, since the beginning of the year, the cryptocurrency market had lost more than USD 1 trillion or around Rp. 14,953 trillion of its market capitalization due to the pressure on the digital asset. As a result, the crisis hit the entire digital asset sector on a global scale.
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As a direct consequence of this, holders of the flagship digital currency, Bitcoin(BTC) have been hard hit by the market crash, as evidenced by the fact the number of BTC millionaires decreased significantly by almost 70 percent in the first half of 2022.
Reporting from Finbold, Monday (4/7/2022) shows that on June 29, 2022, the number of Bitcoin millionaires reached 30,626. Specifically, addresses with a BTC balance of over USD 1 million are 26,284, according to BitInfoCharts.com statistics. Meanwhile, there are 4,342 wallet addresses that have a combined balance of around USD 10 million or more.
When using the Wayback Machine web archive tool, as of January 5, 2022, 99,092 BTC addresses with Bitcoin worth over $1 million were reported, down 69.09 percent since the start of the year.
Bitcoin millionaires drop drastically
Since early January, the number of Bitcoin millionaires has fallen drastically, but the decline is even more impressive if we take the date further back to October 2021, when BTC was trading near an all-time high, the losses were more spectacular.
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In fact, when 116,139 Bitcoin addresses are confirmed to be millionaires on October 28, 2021, it will represent a decline of 73.62 percent between then and June 29, 2022.
Asset performance continues to be negatively affected by a number of issues, some of which include increased regulatory oversight, volatile market conditions, geopolitical turmoil, rising inflation and rising interest rates.
With such market uncertainty, more crypto traders are looking to Bitcoin for the short term.
