Cryptocurrency is making waves in Nigeria as the Africa Stablecoin Consortium (ASC) introduces cNGN, the country’s first regulatory-approved stablecoin. This digital currency, backed by the Naira, aims to revolutionize remittances and cross-border transactions in Africa.
In a bid to expand its reach and adoption, ASC has initiated discussions with key players in the African crypto space – Roqqu and Yellow Card. These exchanges are pivotal for providing platforms where users can buy, sell, and trade cNGN seamlessly.
Early Talks with Prominent Exchanges
ASC’s efforts to secure listings on Roqqu and Yellow Card are strategic moves towards enhancing the accessibility of cNGN across the continent. While these discussions mark a significant step forward, no concrete commitments have been made yet by either exchange.
According to industry experts, having cNGN listed on more platforms is crucial for its utility as a tool for remittances. The success of this stablecoin heavily relies on garnering support from major exchanges with a wide-reaching presence in Africa.
Challenges in Adoption
Despite securing listings on Busha and Quidax, two Nigerian exchanges, cNGN faces hurdles in gaining widespread acceptance due to a lack of commitment from larger trading platforms. Without strong backing from prominent exchanges, the growth potential of cNGN remains uncertain.
Jason Marshall, COO of Yellow Card, highlighted that listing decisions are influenced by factors such as market demand, financial stability of the coin issuer, and compliance standards. For a coin to be considered for listing on their platform, it must meet stringent criteria including substantial capital reserves.
Insights into Market Perception
While ASC envisions cNGN as a facilitator for African remittances and sees potential in cross-border transactions with other stablecoins like cKES (Kenyan Shilling-backed token), market players remain cautious about its domestic utility.
Eseoghene Onomor, CEO of Roqqu expressed optimism about the value proposition of cNGN but emphasized that time is needed for widespread adoption. The chicken-and-egg scenario arises where exchange listings are essential for driving adoption while exchanges await proof of demand before committing.
Future Prospects and Challenges
As Nigeria’s first compliant stablecoin strives to establish itself in the crypto sphere amidst scepticism from users regarding its practicality compared to existing digital payment systems within the country, collaborations with key exchanges become imperative for fostering trust and usage among consumers.
The journey towards mainstream acceptance may be challenging yet filled with opportunities for innovation and growth within Africa’s evolving cryptocurrency landscape.
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