Nigeria’s CBDC wavers as stakeholders assess the cNGN stablecoin’s future


Finna Protocol, a multi-utility stablecoin ecosystem in Nigeria, claims that many firms will back it once it launches, thanks to the backing of “heavyweights” in the cNGN consortium.

Crypto industry insiders in Nigeria have spoken out about the CBN’s green light for the cNGN stablecoin and how it may fare in the country’s adoption market compared to the eNaira central bank digital currency (CBDC).

Nigerian banks and fintechs came together in December 2023 to form the Africa Stablecoin Consortium (ASC), which introduced the new stablecoin. Both token holders and the Nigerian economy stand to benefit from this.

To understand the possible cNGN adoption rate, Cointelegraph polled Nigerian cryptocurrency industry insiders for their thoughts. Rume Ophi, a crypto analyst from Nigeria, said that the new stablecoin will be well-received by the country’s crypto community.

The cNGN’s success, says Ophi, will hinge on the amount of attention it receives and the consortium’s attempts to inform the public about its capabilities and characteristics. Since Nigeria is Africa’s crypto hotspot, he went on to say that most exchange platforms would probably list the cNGN.

The Nigerian multi-utility stablecoin ecosystem Finna Protocol said on X (formerly Twitter) that it is very improbable that the cNGN would complement the eNaira, contrary to statements made by the ASC. It is almost impossible for two stablecoins on different blockchains to work together, the article claims.

The Finna Protocol interprets the presence of “heavyweights” in the cNGN consortium as a sign that several businesses will support it once it launches. The X thread brought up the possibility that Web3 would become widely used in Nigeria if cNGN were to be adopted countrywide.

Emurgo Africa’s research indicates that Kenya, South Africa, and Nigeria are leading the adoption of blockchain and Web3 technologies on the continent. Still, not many Nigerians have started using the eNaira.

According to Ophi, the CBDC in Nigeria was unsuccessful because the public saw it as an effort by the government to stifle the country’s cryptocurrency market.

On January 4, 2024, the CBN gave the ASC the green light to test the waters with the cNGN stablecoin in its regulatory sandbox. The consortium is planning to debut the new coin on February 27, 2024.

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