Nigeria has been making some good progress on blockchain tech. And they have done variety of the efforts to build their eNaira. But for some reason it did not take off as they expected. It's not really a CBDC you can say but it was meant to get people off the blockchain altcoins. And that failed.
So the Africa Stablecoin Consortium was formed. And they decided to come up with the stablecoin that would be tradeable in entire africa. And it would be backed by the Naira. This would make the naira currency tradeable globally and considering it is on blockchain the international market can take up as well.
Let's talk about the cNGN a new stablecoin that would be pegged to naira.
Stablecoin from Africa Stablecoin Consortium and the Central Bank of Nigeria
Central bank of nigeria has realized the power of crypto. And that is one of the reasons they came up with the eNaira project. But they are not able to successfully bring the people into it. And that means they have to think of many other unfilled areas where the stablecoins are supposed to work and bring the change.
Central bank has now approved the cNGN stablecoin. This is meant to be released in Janauary but the way things are going on in their side, they decided to put up the launch postponed to the end of the Feb 2024. And that also means there would be more massive level of testing that would go for the blockchain as well as the stablecoin before it is released in the exchanges and market.
You can find reference here.
Which Blockchain? What protocol of cNGN?
cNGN is a stablecoin on the bantu blockchain. And it makes use of the AMTP protocol. So they are kind of decent on the tech side. The blockchain allows the digital assets, smart contracts and staking. So they are kind of ready for any future upgrade with the blockchain and the crypto coins too. Also it has a stablecoin created and sandbox tested with the banks internally.
Exchanges, banks and the developers are making use of the Bantu blockchian already. And they are making use of the same in the internal testing. So there is a chance that they are ready for the prime time working already. It's the official launch and the international market linking that is remains to be seen on the network side.
You can check the reference here.
What does cNGN offers to the Nigerian market?
Nigerian market is interested in remittance on international scale. They want something they can use with market without having to worry about forex rates. So this stablecoin is intended to help with that. For example, this stablecoin is backed 1:1 with the eNaira. And it is also easy to use any shops and the marketplace as they are adding the QR code and the app scanning.
New infrastructure with the CBDC and the stablecoin is going to be good for the cost and the building infrastructure over. In short, this coin is regulated and also being legally adjusted to the naira. So this goes to show that nigerian market is ready for their first step into the stablecoin market and don't have to use Tether etc.
Nigeria has been growing and they are going to be the future blockchain market if they continue at this pace. The release of the cNGN stablecoin is going to bring more adoption in the crypto market of the Nigeria. Let's hope cNGN brings some interesting results from the Nigerian market.