The rise of Central Bank Digital Currencies (CBDC) and WHY NIGERIA SHOULD CONSIDER NGN STABLE COIN ON THE ALGORAND BLOCKCHAIN

The rise of Central Bank Digital Currencies (CBDC) and WHY NIGERIA SHOULD CONSIDER NGN STABLE COIN ON THE ALGORAND BLOCKCHAIN

By Karla Obakpolor | Karla Obakpolor | 18 Apr 2020


THE ALGORAND BLOCKCHAIN

 

Algorand Logo

Algorand is the world’s first open-source, pure proof-of-stake blockchain protocol, that enables the development of scalable blockchain solutions to solve problems.

Algorand is the first BlockChain that has solved the BlockChain trilema that implies that a blockchain cannot be truly decentralized, secure and scalable at the same time, but would have to be two of the three.

The Algorand BlockChain has solved the blockchain trilema making it the world’s first truly decentralized, scalable and secure blockchain.

A blockchain with features as this is most suitable to build on and achieve sustainable use cases.

One of such use cases is that of creating a stable digital currency.

Stable digital currencies can be built on the Algorand Blockchain, one of such as is, is the Republic of Marshall Island, a country who will be powering their National Digital Currency on the Algorand blockchain.

 

ABOUT CENTRAL BANK DIGITAL CURRENCIES

The Covid-19 situation in the world’s global economic space today has made countries re-think using Digital Asset as an advantage to their liquidity and economic growth, they’re thinking creating their own CBDC.

Nations of the world are seeking and inquiring on the advantages of moving to a Central Bank Digital Currency on a BlockChain or a hybrid of both blockchain and traditional execution of economic activities.

We might be well aware that China is working on their first Central Bank Digital Currency, and it is safe to predict that most countries will follow suit, and as they do, the Algorand BlockChain will be suitable to meet their CBDC powering needs; one reason is: Algorand’s transaction finality makes it suitable, efficient and effective for stable coins to be built on it.

Nations are seeking to be in the forefront of financial innovation so they can establish and better govern a more flexible monetary policy system in their economy. Banks are investigating and competing to produce FinTech products, there's one in Nigeria seeking to do such.

If private finance institutions are already working on this, then I think it's high time the Central Bank of Nigeria considered this.

 

WHY NIGERIA SHOULD CONSIDER BUILDING THE NGN STABLE COIN ON THE ALGORAND BLOCKCHAIN

  • The backbone of our economy is crashing

The Nigerian economy is dependent on oil, and in the last quarter of 2020, the price have consistently dwindled.

There is need for an introduction of a new system of trading and since the technology of the present is BlockChain, then Nigeria should consider the Algorand BlockChain which has solved a common block chain problem thereby bringing more decentralization, scalability and security to the technology.

 

  • The Nigerian currency is devaluing by the day

As expected, when the backbone of an economy crashes, the currency for that economy follows suit.

The Naira is constantly losing it’s power causing instability and inflation for the citizens. We could take a cue from the Marshall Island who plan to algorithmically fix a 4% value increase on their National Digital Currency to prevent runaway inflation.

 

ALGORAND'S USE CASES

The Algorand Blockchain is suitable for building sustainable solutions that nations and organizations face. This is proven by the sustainable and profitable Use Cases on the Algorand BockChain.

You can see that the Algorand BlockChain is already being used to build solutions for Nations and Private Organisations alike.

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ALGORAND'S GRANTS PROGRAM

Whats more; if you're a BlockChain Developer, you have the opportunity to have your dApp project funded through the 250M ALGO Grants program.

250M ALGO Grant Program

Find out how to get funded by Algorand Foundation.

 

You can learn more about the ALgorand BlockChain here: 

Visit their Website

Check them on Twitter

Join them on telegram

 

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Karla Obakpolor
Karla Obakpolor

I'm a cryptocurrency enthusiast.


Karla Obakpolor
Karla Obakpolor

All about CryptoCurrency and BlockChain

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