Earlier quoted context omitted.
No, hashes generally require twice as many bits in order to avoid birthday attacks — that's why one uses SHA-256 for 128-bit security. 98 bits is still plenty, of course, but it's not 128 bits.
If we're talking about the actual hash signal uses for this value, then sure, but talking about the number of digits displayed isn't even the right thing to care about, since they're using SHA1 for the hash AFAICT: https://github.com/WhisperSystems/Signal-Android/blob/3.0.0/...
There's simply no excuse to choose to use SHA1 in 2016. It's not completely broken, it's probably good enough, but why not just truncate SHA2?