Last updated on July 15th, 2020 at 11:45 am
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Since after the announcement proposing the launch of ABCD, the claimed first stablecoin in Africa. There has been some misunderstanding concerning the first blockchain on which the stablecoin was created.
Many platforms claim to be the first to develop the first stablecoin in Africa. KubitX claims it was first developed on stellar chain by its platform. While Binance claims it will be the first to have same developed on its platform by BitSika.
Moreso, Digital Rand platform claims it first developed Digital Rand for South Africans on ethereum blockchain(DZAR) making it the first stablecoin in Africa. Digital Rand was created on ethereum blockchain which is pegged 1:1 to South Africans Rand.
In a confirmation tweet by KubitX Co-founder and CEO Eric Anan, KubitX created the first stablecoins in Africa pegged 1:1 to Nigeria Naira. This stablecoin was created on stellar blockchain with the symbol NGNX and NGNT.
The second probably is Digital Rand for South Africans which is created on ethereum blockchain. Digital Rand is pegged 1:1 to South Africans Rand which is listed on Coingecko and Coinstats.
The third probably is ABCD which is been developed on binance blockchain. The Africa stablecoin on binance chain is the product of Ghana-based cross-border money transfer startup Bit Sika.
According to reports, the project received funding recently from microtraction, an investment platform based in Lagos, Nigeria. Bit Sika got enrolled into Binance Lab Incubation Program earlier this year.
The Binance own ABCD appears to be the most viable stablecoin which might see a mainstream adoption. Considering its recent partnership with Paxful to enable it tap into the Nigeria market. Nigeria accounts for over 50 percent of gift card trades on Paxful escrow service platform.
Moreover, KubitX might be the a good push considering its partnership with Interswitch Blockchain Service. Interswitch blockchain service is a payment processor using Verve Cards. KubitX already has over 500 merchants using theirs.
“My personal conviction is that given the development we are seeing, not so much on the bitcoin segment but on the stablecoin projects. We did better be ahead of the curve.”
Christine Lagarde, the current President of European Central Bank talking on stablecoins.
Come 2020, the use of stablecoins will definitely see a faster adoption and will likely be powered mostly by distributed ledger technologies from Central Banks.
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