Ghana-based cryptocurrency exchange, Bit Sika has partnered with Linova capital to create an African Stablecoin $ABCD for the Nigerian market and for the benefit of other Africans.
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As the adoption of stablecoins grow, opportunities will be created that enable hundreds of millions, and eventually billions of people to join the developing global, borderless and public decentralized financial system.
According to the whitepaper
, the founding partner and financial partner formed a ‘Collective’ and have proposed a Stablecoin, to safeguard against price volatility in crypto. Through the ABCD Collective, $ABCD Stablecoins will be issued and the balance accounted for via 3rd party audits.
The token is supported by many other exchanges in the ecosystem. From the onset, they will seek the support of many top Nigerian exchanges. Bit Sika and Linova Capital are the initial members of the $ABCD Collective and the first issuers of $ABCD.
What is Bit Sika
Bit Sika helps Africans instantly receive money from anyone on earth at no fees. The app is simple to use. Everyone signs-up to the app via a Google account login and gets to set a short username starting with a dollar sign.
What is a stablecoin?
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative relative to some stable asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money or to exchange traded commodities.
How the Africa Stable-Coin (ABCD) will help the Nigerian market
The Naira is Africa’s biggest currency, but for the most part it is restricted to the four walls of Nigeria. Investors who want to deal in Naira have to be present in Nigeria to do so. Not to talk of the frequent downtimes, huge fees, daily limits and seizure of the fiat Naira.
This is the reason Bit Sika and LinovaCapital are building a Naira stable-coin that will solve these problems and provide a better currency for Nigeria and Africa as a whole. The token is built on the Binance Chain for efficiency and performance.
The $ABCD’s Issuance
The Africa Stable-Coin (ABCD) is built on the Binance Chain, Byzantine Fault Tolerant, and Proof of Stake Consensus via its token issuance model. With $ABCD, Nigerians and other Africans can trade directly on international exchanges like Binance.
The fiat-backed stablecoins are pegged with a 1:1 ratio to a fiat currency. For every $ABCD that is issued, there is a corresponding Nigerian Naira to back its value. Stablecoins like $ABCD will provide a bridge from the legacy system to the decentrlized functional system.
The African Stablecoin ($ABCD) will provide an equally important hybrid structure of both decentralized issuance via the Binance Chain, and periodic 3rd party audit of the reserve asset.
$ABCD holders may exchange the Nigerian Naira for $ABCD at a 1:1 exchange rate by initiating a withdrawal of $ABCD from their Bit Sika or Exchange accounts to any Binance Chain address they specify. The Naira amount of $ABCD is debited from a holder’s Bit Sika or Exchange account balance at the time of withdrawal.