Stakeholders analyze cNGN stablecoin prospects.

Nigerian cryptocurrency industry stakeholders have commented on the approval of the cNGN stablecoin by the Central Bank of Nigeria (CBN) and its adoption rate in the country compared to the eNaira Central Bank Digital Currency (CBDC).

The Africa Stablecoin Consortium (ASC) – a collaboration of Nigerian banks and fintechs – announced its new stablecoin in December 2023. This is aimed at bringing benefits to the people and the Nigerian economy.

Cointelegraph spoke with stakeholders in the Nigerian cryptocurrency industry to get their views on the potential adoption rate for cNGN. According to Nigerian crypto analyst Rume Ofi, the country's crypto community appreciates the new stable coin.

According to Offi, the success of cNGN will depend on how much publicity it gets and the efforts of the community to educate them on its features and capabilities. He also stated that since Nigeria is Africa's crypto hotspot, most exchanges are likely to list CNGN.

Although ASC has stated that cNGN will complement eNaira, the FINA protocol – Nigeria's multi-purpose stablecoin ecosystem – is not feasible, he opined in a post on X (formerly Twitter). According to the post, it is almost impossible for a stable coin on a public blockchain to topple another stable coin on a private one.

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According to the FINA protocol, many businesses, including “heavyweights” in the cNGN consortium, will support it once it goes live. The X thread mentioned that the nationwide adoption of cNGN could mean the widespread adoption of Web3 in Nigeria.

Kenya, South Africa and Nigeria are leading the adoption of blockchain and Web3 technologies on the continent, according to a report by Emurgo Africa. Despite this, Nigerians did not accept Inaira in large numbers.

According to Offi, Nigeria's CBCC failed because people saw it as an attempt by the government to counter the crypto industry in the country.

The CBN has approved the ASC to launch the cNGN stablecoin in the regulatory sandbox on January 4, 2024, and the association will launch the new stablecoin on February 27, 2024.

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