The Central Bank of Nigeria (CBN) has approved the cNGN stablecoin, a new digital currency created by the Africa Stablecoin Consortium (ASC), a collaboration of Nigerian banks and fintechs. This move has sparked discussions among Nigerian cryptocurrency industry stakeholders about the potential adoption rate of the cNGN compared to the eNaira, Nigeria’s central bank digital currency (CBDC).
According to Nigerian crypto analyst Rume Ophi, the success of the cNGN will largely depend on the amount of publicity it receives and the consortium’s efforts to educate the community about its features and capabilities. Ophi also suggested that most exchange platforms are likely to list the cNGN, given that Nigeria is a hotspot for crypto in Africa.
Despite claims by the ASC that the cNGN will complement the eNaira, Finna Protocol, a Nigerian multi-utility stablecoin ecosystem, has expressed doubts. They argue that it is nearly impossible for a stablecoin on a public blockchain to complement another stablecoin on a private one. However, Finna Protocol also noted that the inclusion of ‘heavyweights’ in the cNGN consortium indicates that many businesses will support the cNGN once it goes live. They further suggested that nationwide adoption of the cNGN would lead to a countrywide adoption of Web3.
While Nigeria, along with Kenya and South Africa, is driving the adoption of blockchain and Web3 technologies in Africa, the eNaira has not been well received in Nigeria. This lack of interest has resulted in scarce adoption of the eNaira. Ophi attributes this to the perception that the eNaira is 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 January 4, 2024, and the consortium is set to launch the new stablecoin on February 27, 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Africa |
| Countries | 🇳🇬 🇰🇪 🇿🇦 🇨🇳 🇦🇪 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Rume Ophi |
| Companies | Central Bank of Nigeria, Cointelegraph, Africa Stablecoin Consortium, Finna Protocol, Emurgo Africa |
| Currencies | Stablecoin, enaira |
| Securities | None |
