Nigeria’s CBDC past lingers: Stakeholders analyze prospects of cNGN stablecoin
Nigerian cryptocurrency industry stakeholders have commented on the approval of the cNGN stablecoin by the Central Bank of Nigeria (CBN) and the possible resultant rate of adoption in the country compared to the eNaira, the nation’s central bank digital currency (CBDC).
The Africa Stablecoin Consortium (ASC), a collaboration of Nigerian banks and fintechs, in December 2023, created a new stablecoin, the cNGN, a novel digital currency designed to bring advantages to tokenholders and the Nigerian economy.
Cointelegraph contacted Nigerian cryptocurrency industry stakeholders to get comments on the possible adoption rate for cNGN. Speaking with Nigerian crypto analyst Rume Ophi, he opined that the nation’s crypto community will appreciate the new stablecoin.
According to Ophi, the success of the cNGN depends on how much publicity it gets and the consortium’s efforts in educating the community on its features and capabilities. He further stated that most exchange platforms will likely list the cNGN as Nigeria is Africa’s hotspot for crypto.
Despite the reports by ASC saying that cNGN will complement the eNaira, a Nigerian multi-utility stablecoin ecosystem, Finna Protocol noted in a post on the X platform that it is unlikely. As per the post, it is nearly impossible for a stablecoin on a public blockchain to complement another stablecoin on a private one.
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According to the Finna Protocol, including ‘heavyweights’ in the cNGN consortium signals that many businesses will support it once it goes live. In the X thread, Finna Protocol mentioned that cNGN’s nationwide adoption would mean a countrywide adoption of Web3.
Kenya, South Africa and Nigeria are driving the adoption of blockchain and Web3 technologies on the continent, according to a report by Emurgo Africa. Despite this, Nigerians have shown a disregard for eNaira. This lack of interest is the reason for eNaira’s scarce adoption.
Rume Ophi stated that Nigeria’s CBDC failed because people perceived it as the government’s attempt to oppose the crypto industry in the country.
The CBN approved the ASC to pilot the cNGN stablecoin in its regulatory sandbox on Jan. 4, 2024, and the consortium is launching the new stablecoin on Feb. 27, 2024.
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