cNGN, a consortium-backed stable coin

Charles-Tim

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Stakeholders analyze prospects of cNGN stablecoin.

https://cointelegraph.com/news/nigerias-cbdc-past-lingers-stakeholders-analyze-prospects-of-cngn-stablecoin

Quote

Cointelegraph contacted Nigerian cryptocurrency industry stakeholders to get comments on the possible adoption rate for cNGN. Speaking with Nigerian crypto analyst Rume Ophi, he opined that the nation’s crypto community will appreciate the new stablecoin.

According to Ophi, the success of the cNGN depends on how much publicity it gets and the consortium’s efforts in educating the community on its features and capabilities. He further stated that most exchange platforms will likely list the cNGN as Nigeria is Africa’s hotspot for crypto.

Let us see what would happen. I was guessing the reasons for the adoption of cNGN would be for remittance and also for those abroad to be able to have easy access to naira (I mean naira-pegged token cNGN) for holding. But as it has naira value and as naira price is declining, this will discourage some people.

Some people will prefer fiat-pegged coins like USDT which has minimal price declination. But let use see what would happen.

The date set for the launch of cNGN is 27th of February 2024.

DubemIfedigbo001

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This is really a great and welcome development, my only problem is that this is centralized and people will not be confident enough to leave their money in the Nigerian exchange, reason being that Nigerian government is never to be trusted, I need to see the white paper, so I'll be convinced that this is not a bigger bank created by the merging of some indigenous banks to continue their local banking policies and increase their gain margins on a larger scale.
Another thing that troubles me is this, how strong is their customer support system, because normally, in Nigerian banks, if your transaction has issues or your account, it'll take weeks, or even months to get that resolved, now if such things happen, who do you meet in particular to resolve it. This one go hard oooo, but let's just fold our hands and observe.. Well done Nigeria as you incorporate crypto strategically.

Agbamoni

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Quite impressive Nigerians are adopting rapidly and accepting the growth in new technology. I told my friend once that if Naira has a peg its value won't depreciate the way it is doing now. I appreciate the banks that collaborated to make this a reality.

This great news follows after the release of the ban on cryptocurrency in Nigeria. I believe this should also be a gateway for global awareness of cryptocurrency in our country. Also, a means to where we can make various blockchain transactions in our local banks.

Justbillywitt

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Quote from: Nwada001 on December 23, 2023, 06:32:48 PM

This one nah welcome development way we get like this for the country eh no go only show say we they advance it also show say we they adopt to the new trend way be the blockchain tech.

One thing way I believe say they increase the dollar rate to naira currently for the country nah base on say we too they make use of the foreign currency no be just by people way they into importation but people way also they do trade before we buy we need buy USDT and other foreign currency then we convert to any pair way we wan carry trade.

If them fit promote this new digital naira for them to also make am available as pairs for exchange where some coins also fit they pairs to am then we fit see some increase for the currency value just small ooh, because we go they the currency direct instead of USDT, USD or FBusd before we trade.

Nothing is too difficult to achieve, but to see this eNaira getting paired with coin for exchange go hard. Our currency is not traded globally and this people are not ready to do that kind of promotion. E go good say we wey be Naija people make we first adopt am Sha, but e go dey hard for us because we no too trust this our people over here. Anytime policy fit just come up and render the eNaira useless. Usdt or USD is more reliable because it is traded globally few people can't just rise up one morning and make a policy that will render it ineffective unlike what we have here in this part of the world.

Nwada001

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This one nah welcome development way we get like this for the country eh no go only show say we they advance it also show say we they adopt to the new trend way be the blockchain tech.

One thing way I believe say they increase the dollar rate to naira currently for the country nah base on say we too they make use of the foreign currency no be just by people way they into importation but people way also they do trade before we buy we need buy USDT and other foreign currency then we convert to any pair way we wan carry trade.

If them fit promote this new digital naira for them to also make am available as pairs for exchange where some coins also fit they pairs to am then we fit see some increase for the currency value just small ooh, because we go they the currency direct instead of USDT, USD or FBusd before we trade.

Obim34

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It's a nice step tho, but considering the possibility of Nigerians. adapting to the useage of this cos I believe it's not a Fiat but a crypto currency and investing in it means we have to loose our doubt.

This might not be what we need at the moment considering how bad the economy is but we just need to hope if this creation might help in a way to stable the Naira, definitely we know it won't correct the market but at least we need it to become stable first.

Barikui1

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Truly as we usually say, naija no dy carry last. As I saw this I was impressed actually, but I still have a bitter sweet feeling about it.
The sweet feeling is as a typical Nigerian I feel proud when a Nigerian or any group of Nigerian is making us proud, but the bad feeling is if people can have trust in it.
Just look at E- naira, you need to be Altra good in marketing to convince someone to put his or her money there, base on how the value of naira is.
So I just hope this one is different.

Charles-Tim

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Quote from: Davidvictorson on December 23, 2023, 08:53:43 AM

It is not what I expect but it is a good start. What stopped them from pegging it to the USD instead of the Naira? This is one of the questions that came to my mind. Will adoption of the token affect the Naira positively or it will have no effect at all.

If it is backed by naira in 1:1 ratio, that means the bank will hold the amount of bought cNGN in naira. Assuming Mr A bought 5 cNGN, ₦5 will be held in bank in storage. If more people buy it, especially the foreigners, that means more people are buying naira. As of now, people do not have confidence in holding naira. Which means they may not want to hold its peg coins like cNGN.

I guess the network fee may discourage many people from using it locally. Also the fee are earned by the miners or validators which is not what most Nigerians that are into crypto are having as a business.

Davidvictorson

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Great initiative. I love it. It is not what I expect but it is a good start. What stopped them from pegging it to the USD instead of the Naira? This is one of the questions that came to my mind. Will adoption of the token affect the Naira positively or it will have no effect at all.

There is still no much information on this to be able to get a full picture. If you see the white paper on this please send it my way.

Doan9269

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Quote from: Charles-Tim on December 23, 2023, 04:03:47 AM

Unlike eNaira, not created by the CBN. The principal collaborators are Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity, presenting a noteworthy alliance within the Nigerian financial industry.

It would be a token on blockchains like Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. Facilitating effortless global transfers and broadening its use internationally.

Pegged with naira.

https://cointelegraph.com/news/nigerias-top-banks-collaborate-on-new-cngn-stablecoin

I think this is better. But definitely it can be frozen like USDT, USDC and others.

I will say that Nigeria is going on an impressive way these days starting from the partial ban lift of the use of bitcoin and more other latest developments coming to mark technology advancement and innovation in the country, the only thing i see as a shortcoming over this cNGN stablecoin is the fact that it was pegged with Naira, we know how recently naira has not been performing well in the economy parallel market with it's exchange rate to USD, maybe if they had made it pegged to USD it could have draw more attention and much difference from enaira, but this is a crypto now and not fiat like enaira.

Charles-Tim

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Unlike eNaira, not created by the CBN. The principal collaborators are Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity, presenting a noteworthy alliance within the Nigerian financial industry.

It would be a token on blockchains like Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. Facilitating effortless global transfers and broadening its use internationally.

Pegged with naira.

https://cointelegraph.com/news/nigerias-top-banks-collaborate-on-new-cngn-stablecoin

I think this is better. But definitely it can be frozen like USDT, USDC and others.

Date set for the launch of cNGN is February 27, 2024. https://cointelegraph.com/news/nigeria-cbn-greenlights-stablecoin-launch-february

Topic: cNGN, a consortium-backed stable coin (Read 135 times)