Central Bank of Nigeria Approves cNGN Stablecoin: Hopes and Challenges Ahead
Summary:
The Central Bank of Nigeria (CBN) has approved the cNGN stablecoin developed by the Africa Stablecoin Consortium (ASC), prompting predictions about its potential adoption compared to the local CBDC, eNaira. Crypto analyst, Rume Ophi, believes that broad acceptance of cNGN depends heavily on effective promotional and educational efforts about the stablecoin and that Nigeria, as a booming hub for crypto, could see it adopted on multiple trading platforms. Despite these positive predictions, skepticism exists regarding the ASC's claim that cNGN will augment the eNaira. The approval granted by the CBN paves the way for the official launch of the cNGN stablecoin on February 27, 2024.
The Central Bank of Nigeria (CBN)'s approval of the cNGN stablecoin has prompted industry experts in the Nigerian cryptocurrency sector to share their expectations on its potential acceptance, in contrast to the eNaira, Nigeria's central bank digital currency (CBDC). The Africa Stablecoin Consortium (ASC), a coalition of fintech companies and banks in Nigeria, introduced the cNGN stablecoin in December 2023, an innovative form of digital money intended to profit the Nigerian economy and its holders.
For insights on the potential uptake of cNGN, Cointelegraph reached out to key figures within the Nigerian cryptocurrency scene. In his interview, Rume Ophi, a Nigerian crypto analyst, predicted that the local crypto group will welcome the fresh stablecoin. Ophi's stance implies that promoting and enlightening about the cNGN's features and benefits would be pivotal to its success. He also noted that a high likelihood exists for trading platforms to list the cNGN, considering that Nigeria is a crucial spot for crypto in Africa.
ASC's suggestion that the cNGN would enhance the eNaira, Nigeria's multi-use stablecoin ecosystem was met with skepticism by Finna Protocol, who shared on the X platform that such correlation appears unlikely. The post argued that it seems highly implausible for a public blockchain stable coin to augment a private one.
Finna Protocol perceives that the cNGN's wide-scale endorsement indicates that several enterprises would back it once active, hinting at the involvement of 'big players' in the consortium. In the X thread, Finna Protocol claimed that a nationwide acceptance of cNGN could lead to a countrywide embrace of Web3.
According to a study by Emurgo Africa, Kenya, South Africa, and Nigeria are spearheading the utilization of blockchain and Web3 technologies in Africa. However, Nigerians have shown little interest in eNaira, causing low adoption rates. Ophi attributes this mainly to a sense of it being the government's defiance towards the country's crypto industry.
On January 4, 2024, the CBN granted ASC permission to trial the cNGN stablecoin within its regulatory sandbox, with the consortium set to launch the new stablecoin on February 27, 2024. From Asia Express Magazine: HK gaming corporation plans to invest 100M in crypto treasury, CBDC agreement between China/UAE.
Published At
1/7/2024 12:47:45 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.