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Nigerian cryptocurrency exchange Quidax has integrated support for cNGN, the country’s first regulated stablecoin pegged to the naira. This development, following Busha’s earlier listing of cNGN, underscores Nigeria’s growing embrace of digital assets under a regulatory framework rather than outright restrictions.
Strengthening Crypto Adoption in Nigeria
With the March 12 launch, Quidax users can now send and receive cNGN between wallets, unlocking new possibilities in payments, remittances, and crypto trading. The stablecoin’s adoption aligns with Nigeria’s evolving regulatory stance, as the Securities and Exchange Commission (SEC) oversees its implementation to ensure compliance with financial regulations.
Developed by the African Stablecoin Consortium (ASC), cNGN is the product of a three-year collaboration involving Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar. Officially launched in February 2024 under SEC’s regulatory incubation, the stablecoin operates through WrappedCBDC Ltd., a joint venture dedicated to blockchain-based digital currency solutions.
The Road to Adoption
Since its inception, cNGN has seen steady but measured adoption, with 121.3 million tokens in circulation and 127 holders, according to data from its official platform. The ASC carefully evaluates exchanges seeking to list the stablecoin, ensuring proper reserve management. Additionally, platforms must pay a ₦100,000 verification fee to cover third-party service costs associated with regulatory compliance.
Despite its potential, some traders remain skeptical about cNGN’s added value, given the widespread availability of fiat naira on major cryptocurrency exchanges.
“There’s already fiat naira in the crypto space,” noted Lagos-based trader Chibunna Kingsley. “It’s unclear what additional benefits cNGN offers.”
Expanding Market Access and Global Integration
Nonetheless, cNGN presents an opportunity for decentralized exchanges that previously delisted the naira, providing Nigerian traders with expanded access to global crypto markets. The ASC is actively working to secure additional exchange listings and position cNGN as a key tool for cross-border transactions and remittances.
The true test for cNGN lies in its ability to gain mainstream adoption and establish itself as a relevant digital asset within Nigeria’s rapidly evolving financial ecosystem. As the country continues refining its regulatory approach to cryptocurrencies, stablecoins like cNGN may play a pivotal role in bridging traditional finance with blockchain-powered solutions.
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