Why We Need A Naira Stablecoin In Nigeria
We’ve all seen the success of stablecoins like Tether(USDT), TrueUSD(TUSD), USD Coin(USDC) etc. in both transaction and investment purposes. So why do you think we need a similar stable coin in Nigeria? Here is the reason below👇:
A stablecoin pegged to the local national currency, that has zero counter-party risk (in the case of a trustless stablecoins), no physical reserves in a bank, no single entity controlling issuance, backed by cryptocurrency on the blockchain that is transparent to the public, offers significant value to society.
- Non-volatile stablecoins are an easier gateway into the cryptocurrency ecosystem by offering a better version of existing digital money that is publicly accountable and yet does not suffer from fluctuations in value referenced to the local fiat.
- In many markets the banking system is mistrusted by a large majority of the population. Zero counter-party risk stablecoins provide a possibility to do banking without having to trust a single entity.
- Increased financial inclusion. Downloading a cryptocurrency wallet can be done by anyone irrespective of where they live, for free. That cryptocurrency can then give access to a new world of finance which is currently not available in largely cash based countries.
- Privacy and transparency. Often privacy and transparency are at opposite ends of a spectrum but in cryptocurrency both can be achievable at the same time. Interactions can be proven publicly cryptographically but without identifiable information.
Article Source: Bitspark.io
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