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A collaboration of Nigerian financial institutions, fintech companies, and blockchain experts known as the Africa Stablecoin Consortium has announced the upcoming launch of a compliant Nigeria Naira stablecoin, scheduled for February 27, 2024.
The consortium revealed in a statement on Friday that the introduction of the cNGN stablecoin aligns with the guidelines of the recently released Regulatory Sandbox by the Central Bank of Nigeria.
Emphasizing the transformative impact of the cNGN stablecoin on financial transactions, the consortium expressed its commitment to facilitating secure and compliant financial interactions, aiming to revolutionize the way individuals transact and engage with their money securely and seamlessly.
The ASC stated that the cNGN stablecoin is poised to convert the Nigerian Naira into a globally recognized currency for settlements. Backed 1:1 by Naira reserves in designated commercial banks, the cNGN Stablecoin is designed to turn the Naira into a versatile tool for worldwide remittances, commerce, trade, and investment.
Describing the significance of the cNGN, the ASC mentioned, “The cNGN ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology. More than just a currency, cNGN shortens settlement times, enabling payments that traverse the globe swiftly, mirroring the speed of a text message and at a fraction of the cost.”
The consortium highlighted the potential of the cNGN stablecoin to facilitate instantaneous financial transactions, connecting Nigeria’s dynamic economy with international markets and ensuring efficiency in both domestic and global financial interactions.
Moreover, the cNGN stablecoin is expected to empower users to explore the global marketplace in a seamless and cost-effective manner while maintaining the familiarity of the Naira.
The statement from the consortium outlined some key features and benefits of the cNGN stablecoin, including its compatibility with multiple public blockchains, enabling straightforward international transfers and expanding its global utility.
It is essential to note that the cNGN stands out as a compliant and regulated stablecoin, driven by a consortium and pegged to the Naira in the Reserve Bank account. In contrast to the eNaira, developed solely by the central bank, the cNGN is managed collaboratively by the consortium.
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