In a quick move to ensure continued operations, BuyCoins, a popular Nigerian exchange, has moved to fully collaterize the Naira Token (NGNT) stablecoin by USDC, a leading global digital dollar stablecoin.
The move is likely a response to the crypto ban by the Central Bank of Nigeria (CBN) that warned financial institutions and deposit-taking firms from dealing with cryptocurrency exchanges.
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NGNT is pegged 1:1 to the Nigerian Naira, which means 1 NGNT is always valued at 1 Nigerian Naira.
The latest approach means that NGNT is now backed by USDC, a stablecoin issued by regulated financial institutions in the United States and fully backed by audited reserved assets.
According to the official website, the NGNT’s smart contract is audited and verified by Quantstamp, a leading full-stack blockchain security company, guaranteeing its security and stability.
NGNT is supported by other African-focussed crypto platforms that include:
- BuyCoins
- Paxful
- Busha
According to Binance CEO, ChangPeng Zhao (CZ), the recent move by CBN is likely to result in increased P2P volumes in Nigeria as traders looking for alternatives to continue trading crypto.
This latest move by BuyCoins is likely going to be replicated by other Nigerian-based exchanges as they look for alternatives to continue servicing their client base amidst the ban.
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RECOMMENDED READING: We Traded Over $141 Million in 2020 – 5x More than 2019 – Says BuyCoins Africa CEO
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