Africa StableCoin (ABCD) Is Built On Binance’s Native Blockchain

The Africa stablecoin, Africa’s first stablecoin, is backed by Nigeria’s national currency which is the Naira and is built on the Binance native blockchain- the Binance Chain. Let’s find out more about it in the latest binance news.

The crypto momentum in Africa is only increasing and many budding startups are leveraging the blockchain and decentralized ledger technology just to create novel applications that aim to change the future of the financial systems on the continent. The Africa Stablecoin (ABCD) is the first project of Ghana-based cross-border money transfer startup Bit Sika. The reports show that the project was successful because of the collaboration with Lenovo Capital.

The project got enrolled in the Binance Labs Incubation Program at the start of the year and the Bit Sika CEO Atsu Davoh, met with Jack Dorsey when the Twitter CEO was on a trip to Ghana. Dorsey pointed out that time that he was interested in growing the crypto ecosystem in Africa. As per the whitepaper of the project:

‘’The Africa Stable-Coin ($ABCD) is a cryptographic token that is (i) issued by a trust company, $ABCD Collective, (ii) strictly pegged 1:1 to a real-world asset, fiat currency (Nigerian Naira), and (iii) built on the Binance Chain network [1], a Byzantine Fault Tolerant and Proof of Stake consensus network, via its token issuance model.’’

The texts also mentioned that the ABCD stablecoin combined with Naira’s high liquidity and Nigeria’s high population with the technological advancements in crypto. The stablecoin token made for use on the Binance Chain similarly to the Trust Token’s tokenized version of USD, GBP, CAD, and HKD. The whitepaper continues:

 “Africa Stable-Coins ($ABCD) are created at the time of withdrawal from $ABCD Collective and redeemed or “destroyed” at the time of deposit back.”

The project founder Atsu feels that the Naira stablecoin has a lot more useful than other than allowing the users to purchase crypto with local currencies and according to him:

 “Many people have a hard time differentiating cryptocurrencies and knowing their actual value in their local currency. There are a lot of digital currencies backed by the US dollar. We have seen how well they do.

But I feel we also need cryptocurrencies that are compatible with African national currencies. People can easily acquire US dollars, but still choose to spend their local currencies. This illustrates the power of familiarity, which we aim for”