Nigeria’s CBN Set to Launch Naira Stablecoin
Nigeria's CBN to launch cNGN stablecoin on Feb 27, enhancing global transactions and embracing blockchain technology.
The Central Bank of Nigeria (CBN) is set to launch its naira stablecoin cNGN on Feb. 27, 2024. This approval is part of a pilot program in the CBN's regulatory sandbox.
The Africa Stablecoin Consortium, a group of Nigerian banks and fintech companies, announced that the cNGN stablecoin meets the CBN's rules. They are working closely with regulators to ensure the stablecoin is safe, transparent, and compliant.
Unlike the eNaira digital currency created by the CBN, the cNGN is managed by the Africa Stablecoin Consortium. It is integrated with different blockchains like Bantu and BNB Smart Chain and will soon be compatible with more blockchains.
The cNGN tracks the value of the Nigerian naira, it is also backed by reserves in banks. It aims to connect the Nigerian currency with digital currencies globally. This could make Naira transactions easier for Nigerians who live outside the country (ease foreign transactions).
The cNGN is built on public blockchains and offers more flexibility than the eNaira. It allows for easy global money transfers.
It is becoming obvious that the Nigerian CBN is beginning to embrace blockchain and cryptocurrency. In December, they lifted the ban on Nigerian banks dealing with cryptocurrencies, acknowledging the growing global interest in these digital assets.
