Nigerian participants in the cryptocurrency sector have shared their perspectives on the Central Bank of Nigeria’s (CBN) endorsement of the cNGN stablecoin, examining its potential adoption rate within the country relative to the eNaira central bank digital currency (CBDC).
The Africa Stablecoin Consortium (ASC), a partnership between Nigerian banks and fintech companies, unveiled its novel stablecoin in Dec 2023. The objective is to deliver benefits to both tokenholders and the Nigerian economy.
Nigerian crypto analyst Rume Ophi sought stakeholders’ opinions in the Nigerian cryptocurrency industry on the potential adoption rate for the cNGN. Ophi stated that the nation’s crypto community would appreciate the new stablecoin.
Ophi suggests that the cNGN’s success hinges on the level of exposure it receives and the consortium’s dedication to educating the community about its unique features and capabilities. Additionally, he noted that the cNGN is expected to be featured on numerous exchange platforms, given Nigeria’s position as Africa’s cryptocurrency hub.
In contrast to the ASC’s assertions that the cNGN would enhance the eNaira Finna Protocol, a multi-utility stablecoin ecosystem based in Nigeria, we expressed skepticism on X (formerly Twitter). The post suggests that the likelihood of a stablecoin on a public blockchain complementing another stablecoin on a private blockchain is extremely slim.
Ophi’s Insight: Public Perception & Nigeria’s CBDC Struggles
By the Finna Protocol, incorporating “major players” into the cNGN consortium indicates substantial backing from various businesses upon its launch. The X thread highlighted that the widespread acceptance of cNGN nationwide could pave the way for the extensive adoption of Web3 in Nigeria.
Kenya, South Africa, and Nigeria stand out as key influencers in embracing blockchain and Web3 technologies across the continent, as highlighted in a report by Emurgo Africa. However, it’s noteworthy that the adoption of eNaira among Nigerians has yet to reach substantial levels.
Ophi asserted that the failure of Nigeria’s CBDC stemmed from the public perception that it was the government’s move against the nation’s cryptocurrency sector.
On Jan 4, 2024, the Central Bank of Nigeria (CBN) approved the ASC to test the cNGN stablecoin within its regulatory sandbox. Subsequently, the consortium plans to unveil the innovative stablecoin on Feb 27, 2024.
Related Reading | Shib Burn Boost: Automated Surge In 2024
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
Comments (No)