- January 9, 2024
- Posted by: [email protected]
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The Finna Protocol, a multi-utility stablecoin ecosystem in Nigeria, has garnered attention for its upcoming cNGN stablecoin, with key players in the cNGN consortium expressing optimism about its widespread support upon launch. As the Central Bank of Nigeria (CBN) granted approval for the cNGN stablecoin, the Nigerian cryptocurrency industry is now assessing its potential adoption rate in comparison to the eNaira central bank digital currency (CBDC).
The Africa Stablecoin Consortium (ASC), a collaborative initiative combining Nigerian banks and fintechs, announced the cNGN stablecoin in December 2023 with the goal of providing benefits to tokenholders and strengthening the Nigerian economy. Cointelegraph engaged with stakeholders in the Nigerian crypto community to gauge their views on the cNGN’s adoption prospects. According to Nigerian crypto analyst Rume Ophi, the crypto community in the nation is likely to embrace the new stablecoin. Ophi emphasized that the success of the cNGN hinges on effective publicity and educational efforts by the consortium to familiarize the community with its features.
Ophi further predicted that most cryptocurrency exchange platforms would probably list the cNGN, given Nigeria’s status as a prominent crypto hotspot in Africa. However, a notable discord emerged as the Finna Protocol contradicted claims by the ASC regarding the cNGN’s complementary role to the eNaira. In a post on social media, Finna Protocol argued that it is highly improbable for a stablecoin on a public blockchain to complement another stablecoin on a private one.
Highlighting the importance of influential stakeholders in the cNGN consortium, the Finna Protocol emphasized that their involvement signifies substantial business support once the stablecoin is operational. The protocol’s social media post suggested that the nationwide adoption of cNGN could potentially drive the widespread acceptance of Web3 technology in Nigeria.
According to a recent Emurgo Africa report, Kenya, South Africa, and Nigeria are the driving forces behind the adoption of blockchain and Web3 technologies on the continent. Despite this, the eNaira, Nigeria’s CBDC, has not witnessed significant adoption, with Ophi attributing its lackluster performance to public perception associating it with the government’s opposition to the crypto industry in the country.
The CBN approved the ASC to pilot the cNGN stablecoin in its regulatory sandbox on January 4, 2024. The consortium plans to launch the new stablecoin on February 27, 2024, marking a crucial milestone in the evolving landscape of Nigeria’s CBDC initiatives.
