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- 1 CBN is expected to launch cNGN, a public blockchain-based crypto backed by banks and fintech.
- 2 The growth of the same is highly uncertain, as it can be compared with the journey of existing eNaira.
- 3 The crypto community and enthusiasts are optimistic about the growth of Nigeria’s crypto industry with the introduction of cNGN.
The Central Bank of Nigeria has green-signed a pilot launch of the cNGN stablecoin. With the speculation of a stablecoin launch, the country’s crypto space is buzzing and potentially impacting the market.
The Nigerian banks and fintech consortium are backing this newly developed digital currency. It aims to offer several advantages to stablecoin users and its objective is to boost the overall economy.
Nigeria’s Stablecoin Journey
The success of cNGN hints towards the replication of the growth of existing eNaira. Nigeria’s Central Bank Digital Currency (CBDC) has struggled to gain widespread adoption. Analysts are carefully optimizing the cNGN’s prospects.
Rume Ophi, a renowned crypto expert from the country, believes that the community will positively welcome the new stablecoin.
Ophi brings the attention of the citizens to effective communication and education from the consortium to properly understand the potential of the coin. Popular crypto exchanges are expected to list cNGN soon, considering Nigeria’s position in Africa’s crypto space.
However, crypto followers are unsure about the compatibility between cNGN and eNaira, as the former is based on the public blockchain and the latter is private.
Capabilities of cNGN to Overpower Nigeria’s Existing eNaira
There is a common concern among Nigeria’s crypto followers about the ability of cNGN to outshine eNaira. Amid this concern, the launch of cNGN is a remarkable step towards Web3 adoption in Nigeria. Currently, the consortium is overweighting the industry, which supports the growth and optimism about the industry in the nation.
It could be a significant development and boost the growth of the crypto industry in Nigeria. Some of the other countries that can have similar growth are Kenya and South Africa. Collectively, these three countries are behind the Web3 adoption across Africa.
Learnings from eNaira
The eNaira’s dull and least-exciting acceptance provides valuable lessons for the growth of cNGN. Rume Ophi characterizes eNaira’s less exciting growth to people’s perceptions of private and public-backed instruments.
Yet, the same is not expected from cNGN, as nationalized banks are backing it which will attract people’s trust and attention. So, several analysts are optimistic about the rise of the stablecoin in a short period.
Scheduled Launch of cNGN
The Central Bank of Nigeria (CBN) has scheduled the pilot launch of cNGN for February 27, 2024. This event will be closely followed and observed by all the citizens and crypto enthusiasts from the country and outside.
The movements to look for are how it will succeed in overcoming challenges and outpace eNaira. It is surely expected to boost the growth of Nigeria’s crypto landscape.
Importance in the Growth of Crypto Space
The launch of cNGN will revolutionize the Nigerian financial space. If things don’t occur as expected, then it can also replicate eNaira. It can only be known after the event happens. Although it contributes to the development of the country’s evolving crypto space, it has the potential to shape the digital future of the country.
The cNGN can struggle to gain widespread acceptance as it is highly dependent on the government’s perception. The compatibility between private blockchain-based e-Naira and public blockchain-based stable coins like cNGN is skeptical.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
