In a quick bid to ensure continued operations, BuyCoins, a popular Nigerian cryptocurrency exchange, has moved to fully endorse the Naira Token (NGNT) stablecoin. NGNT is backed by USDC and BUSD which are leading global digital dollar stable coins.
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The latest approach means that NGNT is now backed by BUSD and USDC, They are both regulated by financial institutions in the United States, and backed by fully reserved assets, and are redeemable 1:1 basis for US dollars.
The move is 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 in Nigeria.
According to Binance CEO, ChangPeng Zhao (CZ), the recent move by CBN is likely to result in an increased P2P volume in Nigeria as traders look for alternatives to continue trading crypto.
NGNT now lives on the @binance Smart Chain.
It is now [also] backed by BUSD.
We’re excited to be a part of the @BinanceChain community.
More information can be found at https://t.co/s89VEUnKZT
— NGNT (@NGNToken) February 12, 2021
NGNT is a collateral-backed digital currency that bridges the Naira with the advantages of decentralized blockchain technology.NGNT is pegged 1:1 to the Nigerian Naira, which means 1 NGNT is always valued at 1 Nigerian Naira, though the token is not a legal tender.
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 a few African-focussed crypto platforms and has been approved by BuyCoins, Paxful, and Busha.
NGNT is an independently managed open-source project that runs on Ethereum and Binance via smart contracts.
USDC is the world’s leading digital dollar stable coin and is governed by Centre, a membership-based consortium that sets technical, policy, and financial standards for stablecoins.
BUSD is a stablecoin issued by Paxos in partnership with Binance. Paxos and BUSD are approved and regulated by the New York State Department of Financial Services, ensuring the utmost of consumer protections.
The value of the company’s reserves will always match or exceed the value of all the NGNT in circulation. The total supply of NGNT on the two supporting blockchains is 106,150, 000 NGNT, the value of its reserves is publicly available on the blockchain.