Wrapped CBDC Earns ₦15 Million from cNGN Reserves in Seven Months
Wrapped CBDC, the private entity behind the cNGN stablecoin (pegged to the Nigerian Naira), has demonstrated its ability to generate income. A September attestation report, published on Monday, reveals that the issuer earned ₦15.34 million (approximately $10,500) over a seven-month period from income accrued on its reserves. This development highlights the potential for profitability in the Nigerian digital currency landscape and hints at the importance of sustainable financial models for local fintech innovation. The long-term success of Wrapped CBDC, however, is reliant on expanding cNGN adoption among Nigerian users and integration across various crypto platforms.
Shifting Reserve Strategy for Yield
Wrapped CBDC has strategically adjusted its reserve composition since March to maximize returns. The company has favored yield-bearing collective investment schemes (CIS) and short-term government securities. According to the March attestation, the issuer held ₦50 million ($34,000) within a money market fund, part of total reserves amounting to ₦152.508 million ($104,000). The remaining funds were held as bank deposits. The April report presented the same reserve structure and overall totals. However, a significant shift occurred in May, where money market investments and similar assets increased to around ₦100.1 million ($68,250), while cash deposits decreased to approximately ₦51.108 million ($35,000). This illustrates a proactive approach towards managing reserves and optimizing profitability within the evolving fintech ecosystem in Nigeria.
In conclusion, the performance of Wrapped CBDC highlights the initial steps towards financial viability for digital currency ventures in Nigeria. While the recent financial success is encouraging, continued growth and broader acceptance of cNGN within the Nigerian market are crucial for its long-term sustainability.
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