By Amina Asu-Beks
In simple terms, a stablecoin is a form of cryptocurrency crafted to maintain a steady value, often tied to a fiat currency like the US Dollar. In a third-world economy, it proves beneficial by providing a dependable medium of exchange, curbing currency volatility, and offering a digital alternative to potentially unstable local currencies.
This digital evolution is particularly crucial in Nigeria, where the financial market faces international influences driven by artificial debt in African countries, hindering the international value of the Nigerian currency.
Blockchain technology has revolutionized the financial system by digitizing assets globally and decentralizing processes, allowing seamless fund remittance across borders.
For businesses navigating financial crises in Nigeria, here are five compelling reasons to embrace cNGN and Blockchain technology;
1. Reduced Volatility: Stablecoins, tethered to stable assets like fiat currencies, offer businesses a more predictable and less volatile financial environment compared to other cryptocurrencies.
2. Faster Transactions: Leveraging stablecoins facilitates swift and efficient cross-border transactions, operating on blockchain technology and minimizing reliance on traditional banking intermediaries.
3. Lower Transaction Costs: Stablecoins typically entail lower transaction fees compared to conventional banking systems, enabling businesses to cut costs associated with currency conversion and international transfers.
4. Global Accessibility: Stablecoins provide businesses with a global and decentralized payment solution, allowing them to reach a broader customer base without the constraints of traditional banking systems or fluctuating currency values.
5. Financial Inclusion: Embracing stablecoins enables businesses to extend financial services to unbanked or underbanked populations, fostering greater financial inclusion and expanding their market reach.
