Africa has announced the launch of its stablecoin. The Nigerian Naira will ostensibly back the digital currency.
According to reports, the stablecoin is built on the Binance Chain. One fact to bear in mind is that the cryptocurrency momentum in Africa never seems to back down. Even upcoming startups are currently leveraging blockchain technology and cryptocurrency. The continent is looking to develop top-notch applications that might also help transform the future of finance in the world.
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Africa’s new stablecoin is basically the brainchild of Bit Sika, a cross border money transfer startup based in Ghana.
As per the stablecoin’s whitepaper, the ABCD Collective will distribute the token. At the same time, Bit Sika and Linova Capital will direct it.
The coin is allegedly pegged 1:1 to the Nigerian Naira. For its consensus network, it makes use of a Byzantine fault-tolerant Proof of Stake network. ABCD’s token insurance model powers the process.
To ensure there is no foul play ABCD Collective’s funds an independent certified public accountant will audit them every month.
Speaking on the launch, Founder and CEO of Bit Sika, Atsu Davo pointed out a couple of things. First, Bitcoin is experiencing a huge amount of adoption in the Nigerian market. He also claimed that the Naira stablecoin will have a lot of real-world use cases beyond just enabling users to buy cryptocurrencies.
“Nigeria is one of the busiest places for cryptocurrency in Africa right now,” Davo added.
He further disclosed that the company will expand into other African currencies in the near future.
Binance seems to be into Africa’s crypto space. In October, the exchange partnered with Lagos-based fintech startup Flutterwave. The partnership’s ultimate aim is to enable Nigerians to purchase crypto using the Naira. Electroneum also recently launched its mobile top-up feature in Africa.