Industry Leaders Envisage cNGN Adoption to Outpace eNaira
As Nigeria seeks to become the go-to destination for crypto firms in Africa, local companies have stepped up to support the adoption of digital assets. Late last year, the renowned associations for banks and financial institutions dubbed the African Stablecoin Consortium (ASC) launched a new stablecoin cNGN aiming to meet the token holder’s needs and stimulate economic development in the West African region.
The newly launched stablecoin was pegged to the Nigeria Naira and will be issued by the local banks. Guided by Nigeria’s existing laws, the team behind the cNGN submitted the stablecoin for regulatory approval.
Features of cNGN Stablecoin
After careful consideration, the Central Bank of Nigeria approved the cNGN to support financial inclusivity in the region. Moreover, as Nigeria continues to see impressive adoption of crypto assets, the industry leaders believe the cNGN will experience high use cases in the coming days.
In an exclusive interview with the key stakeholders, the official envisaged that cNGN will outperform the central bank digital currency (CBDC) commonly known as the eNaira.The key industry players in the financial sector believe that cNGN will witness high adoption in Nigeria compared to eNaira.
A statement from renowned digital assets analyst Rume Ophi revealed that the crypto-friendly state will welcome the new stablecoin. The analyst advises the team behind cNGN to create awareness among the public concerning the new stablecoin.
Ophi believed that by educating the public on the features and significance of the new stablecoin, the cNGN would reach a larger audience. The executive underscored the need to create awareness among the public concerning the features and benefits of cNGN to the Nigerian economy.
Difference Between cNGN and eNaira
Ophi believes that once cNGN attains the growth stage, most local and offshore exchanges will be willing to list the new stablecoin. A review of the cNGN features demonstrated that the new stablecoin will be compatible with multiple public blockchains to improve the speed of the transactions.
At the initial development of the cNGN, the developers ensured that the new stablecoin was compatible with Tron, Bantu, Polygon, Ethereum, and BNB Smart Chain network.
The compatibility of these networks aims to improve the use case of cNGN in the global markets.The developers confirmed that the cNGN will serve as an eNaira complement. This implies that the cNGN and the eNaira will go hand in hand in providing Nigeria’s financial products.
On the X platform, the Nigeria crypto-savvy community engages in embroiled debates concerning the features of cNGN and eNaira. One X user claimed that the cNGN was an eNiara substitute since the stablecoin was centered on a public blockchain.
Nigerian Regulators Seek to Boost Financial Inclusivity
In a subsequent post, the Finna Protocol revealed that many businesses and investors would support the cNGN after the launch of the new stablecoin. The Finna analyst projects that the popularity of cNGN will drive the adoption of Web3 and crypto in Nigeria.
In an advanced communication the central bank revealed plans to strengthen the Nigerian financial system through new financial products such as cNGN.
Despite the efforts made by the CBN to support financial inclusivity, the West African country has witnessed massive adoption of crypto assets. According to Emurgo, Africa, Nigeria, Kenya, and South Africa lead other countries in stimulating blockchain and Web3 adoption in Africa.
Remarkably, the increase in the adoption of crypto in Nigeria obliged the policymakers to reverse their anti-crypto stance. For the past few months, Nigerian policymakers have prioritized revising the existing regulations on digital assets to create friendly business enviroment for crypto firms.
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