Nigeria’s Crypto Renaissance: ASC’s cNGN Stablecoin Signals Progress in Web3

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  • On January 4, the ASC officially announced the launch of the cNGN stablecoin scheduled for Tuesday, February 27, 2024.
  • The success of the cNGN stablecoin depends on the publicity it gets and the consortium’s efforts to educate the community on its advantages and features.
  • In 2023, a report stated that Nigeria hosts 254 fintech companies.

Amid Africa’s web3 community, several names stand out as the pioneers of the continent’s blockchain ecosystem. Among these pioneers of change, Nigeria has maintained its rank as one of Africa’s most promising blockchain ecosystems.

Since the Golden Age of Bitcoin, Nigeria featured among the top five countries globally in crypto trading volume. The region boasts numerous accomplishments in terms of crypto trading volume, and its government has recently developed a blockchain policy. 

With the 2024 crypto bull run, Nigeria has positioned itself to dominate the African crypto market with its recent announcement. According to the Central Bank of Nigeria, the region is set to introduce Africa’s first stablecoin, cNGN stablecoin.

Nigeria’s Blockchain Ecosystem Transitioning.

Nigeria has consistently showcased a positive affinity for web3 technology. After Bitcoin gained substantial recognition, the region was among the first to exhibit a steady trading volume. Nigeria featured among the top nations globally with significant crypto trading volume.

The story behind this astonishing feat is attributed to its unstable fat currency. The decline in its value effectively caused a massive shift towards the crypto sphere. Years later, Nigeria still dominates the market by publishing the highest P20 exchange volume.

In 2023, despite Africa presenting a small portion of the global crypto transaction volume, Chainalsysisi clarified that Nigeria ranked number one out of 155 countries with the highest P2P transaction volume.

This feat soon became the foundation of Nigeria’s blockchain ecosystem. Although its government acted as a deterrent from recognizing cryptocurrency, it urged its citizens to venture into blockchain-based businesses. To prove its willingness to embrace the technology, Nigeria launched Africa’s first CBDC, the eNaria.

Also, Read Stablecoins is empowering Africa’s economic growth amid currency depreciation.

This soon spurred a technological revolution, causing many developers and entrepreneurs to venture into decentralized finance. In 2023, a report stated that Nigeria hosts 254 fintech companies, each utilizing blockchain technology in their services. In addition, Nigeria houses Africa’s leading fintech organization, Flutterwave.

cngn-stablecoin
Nigeria has one of the top fintech organizations in Africa.[Photo/byOuut]
Nigeria’s blockchain ecosystem showcased plenty of potential, so much so that it inspired its government to release its blockchain policy. According to the Federal Ministry of Communications and Digital Economy (FMCDE), on May 3, the Nigerian government officially approved a national blockchain policy.

At the time, the crypto ban was still in effect, but the approval of this policy would lay the groundwork for an unexpected turn of events.

The policy details indicate the government’s hope of creating a blockchain-powered economy that supports secure transactions, data sharing and value exchange between people, businesses and the government.

It practically services a government-led approach to adopting blockchain technology in Nigeria. This milestone would eventually lead to the unprecedented lifting of the ban on cryptocurrency in December 2023.

Nigeria’s blockchain ecosystem now has core elements to ensure its success. The nation had a functioning CBDC system and a blockchain policy outlining its vision of decentralization, and now it has lifted its ban on cryptocurrency. All that remained was taking a step forward into decentralized finance, a feat Nigeria recently announced.

Nigeria set to lauched Africa’s first stabelcoin; cNGN Stablecoin

Nigeria’s African Stablecoin Consortium has announced plans to introduce a Naira stablecoin, cNGN stablecoin.

For some time now, the African Stablecoin Consortium intended to introduce a Naria stablecoin but occasionally delayed revealing the project details. For that, the ASC apologized for any confusion caused by the positioning of the launch date and stated that the Stablecoin project initially had regulation issues.

On January 4, the ASC officially announced the launch of the cNGN stablecoin scheduled for Tuesday, February 27, 2024. To avoid any other delays, the African Stablecoin Consortium has said it will fully commit to adhering to all guidelines and regulations implemented by the Nigerian regulatory body, the Central Bank of Nigeria. 

The ASC assured, “We aim to showcase the potential benefits of the cNGN ecosystem, ensuring a secure, transparent, interoperable, and innovative solution for digital asset transactions in Nigeria.

Nigeria’s blockchain ecosystem stakeholders have commented on the potential of the Naira stablecoin and its potential adoption rate. Rume Ophi, a Nigerian crypto analyst, has stated that the nation’s crypto community will appreciate its government’s efforts to streamline its crypto sphere.

Also, Read PayPal launches its stablecoin, Paypal USD, pegged to the dollar.

According to Ophi, the success of the cNGN stablecoin depends on its publicity and the consortium’s efforts to educate the community on its advantages and features. Unfortunately, the nation’s CBDC, the naira, has experienced a steady losing streak, and it still hasn’t warmed up to the new concept.

The Central Bank of Nigeria and the African Stablecoin Consortium hope that with the launch of the cNGN stablecoin, its potential will complement the failing eNaira. Unfortunately, not many share this viewpoint since many have stated that it’s nearly impossible for stablecoins on a public blockchain to complete another stablecoin on a private one.

Despite this, Nigeria’s blockchain ecosystem has effectively outpaced its competition. The region will be the first African country to have a CBDC, a blockchain policy, and a stablecoin.

In addition, despite the ban lift’s many restrictions, it showcases a change of heart from the Central Bank of Nigeria. If this trend continues, the nation may attain the title of Africa’s Web3 hub.

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Ken Mutuku
Ken Mutuku
Your Guide to the Future of Tech, Web3, and Digital Storytelling. With a keen eye for detail and a knack for concise communication, Ken Mutuku is your go-to professional for decoding the next wave of technological evolution. Whether through captivating videos, insightful articles, or engaging presentations, he masterfully crafts messages that deeply resonate with his audience, setting him apart in the digital landscape.