Finance

Forex: Firm launches digital currency

CBN vows to tackle forex pressure, raises lending rate

With the introduction of unified foreign exchange (forex) rate, a firm, Boom DAO has introduced Wrapped-eNaira (WeNGN) on the Ethereum blockchain to ease the movement of large sums within and outside Nigeria.

Founder, Boom DAO, Mr. Peter Alfred-Adekeye, said WeNGN is an open-source and permission-less version of the Nigerian Central Bank Digital Currency (CBDC), the eNaira.

According to him, WeNGN brings fiat-level liquidity from Africa’s largest economy and most crypto-centric population into the Ethereum ecosystem.

He noted that WeNGN is pegged 1:1 to the eNaira, thus one WeNGN equals one eNaira, which equals one naira.

‘’WeNGN will enable Nigerians to pay for international goods, services and subscriptions such as Netflix in naira, foreign businesses and Nigerian holiday makers to repatriate their funds abroad seamlessly and without limits and everybody to portably take their naira with them globally and cash out in any currency worldwide. To summarise, Wrapped eNaira creates global liquidity and utility for the naira making it a currency that is acceptable for trades outside of Nigeria,” Alfred-Adeleye said.

He explained that WeNGN could be used by foreign companies in Nigeria and other African countries to repatriate their earnings abroad without relying on banks for foreign exchange.

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“The WeNGN extends the utility of the eNaira, the CBDC of Africa’s largest economy and most crypto-centric population, into the Ethereum ecosystem, from where it can be lent, borrowed, swapped, yield-farmed, used in liquidity pools, or integrated into smart contracts.

“Some of the benefits of the WeNGN include the onboarding eNaira into the ERC-20 format, enabling its integration into Ethereum smart contracts, WeNGN can be used in DeFi for lending, borrowing, token-swapping, yield-farming, and in liquidity pools. WeNGN allows holders to swap it into other ERC-20 tokens such as WBTC, WETH, MTCN, USDT, USDC and more. WeNGN enables global institutional traders and investors to access it and trade it,” Alfred-Adeleye said.

Alfred-Adeleye added that people just need to transfer or deposit any amount they want to repatriate, pay, move or use into a dedicated account in Zenith Bank and they will get a token that will enable WeNGN to credit any account in any bank in the world.

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According to him, WeNGN minting, distribution, and burning are managed on-chain by the Boom DAO as its custodian. As an open-source protocol, all WeNGN transactions are viewable publicly on the Ethereum blockchain and the DAO’s proof-of-reserves are published online in the interest of transparency, and these reserves guarantee 100 per cent redeemability all-time round.

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He added that WeNGN can be exchanged for eNaira or naira on one for one basis through participating merchants worldwide while it is also available on decentralised exchanges like Uniswap from where it can be acquired with any ERC-20 token.

Alfred-Adeleye described Boom DAO as a community-driven, non-profit organisation focused on making commerce more equitable by decentralising money. Boom DAO oversees the Boom Foundation, which is responsible for the Boom e-commerce without banking application, its native token the Multicoin (MTCN), and the global initiative to tokenise CBDCs starting with the WeNGN.

According to him, Boom DAO is a permissionless, token-based membership DAO and the MTCN is also its governance token.

Thenation

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