According to the Finna Protocol, a Nigerian multi-utility stablecoin ecosystem, including “heavyweights” in the cNGN consortium, signals that many businesses will support it once it goes live.
Nigerian cryptocurrency industry stakeholders have commented on the approval of the cNGN stablecoin by the Central Bank of Nigeria (CBN) and its potential rate of adoption in the country compared with the eNaira central bank digital currency (CBDC).
The Africa Stablecoin Consortium (ASC) — a collaboration of Nigerian banks and fintechs — announced the new stablecoin in December 2023. It aims to bring advantages to tokenholders and the Nigerian economy.
Cointelegraph spoke to stakeholders in the Nigerian cryptocurrency industry to get their opinions on the potential adoption rate for the cNGN. Nigerian crypto analyst Rume Ophi said 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 crypto hotspot.
Despite claims by the ASC that the cNGN will complement the eNaira, Finna Protocol — a Nigerian multi-utility stablecoin ecosystem — commented in a post on X (formerly Twitter) that it is unlikely. According to the post, it is almost impossible for a stablecoin on a public blockchain to complement another stablecoin on a private one.
According to the Finna Protocol, including “heavyweights” in the cNGN consortium signals that many businesses will support it once it goes live. The X thread mentioned that cNGN’s nationwide adoption could mean the widespread adoption of Web3 in Nigeria.
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 not adopted the eNaira in significant numbers.
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 will launch the new stablecoin on Feb. 27, 2024.