Central Bank of Nigeria approves Africa Stablecoin Consortium’s cNGN stablecoin
The Central Bank of Nigeria (CBN) has announced the approval of the Africa Stablecoin Consortium (ASC) to pilot the cNGN stablecoin in its regulatory sandbox. The new stablecoin, a compliant Nigeria Naira (cNGN), is set to be launched on February 27, 2024.
The ASC is a collaboration of Nigerian banks and fintech operators.
CBN Governor, Mr. Olayemi Cardoso at the National Assembly on Tuesday, September 26, 2023.
photo credit: CBN
This was announced in a statement by the ASC that the cNGN stablecoin complies with the regulatory requirements and standards set by the CBN, the Nigerian Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU).
Adding that the cNGN serves as a compliment, not a substitute, for the eNaira, which is the Central bank Digital currency (CBDC) issued by the CBN. Unlike the eNaira, which the CBN created with broader capabilities, the ASC oversees the cNGN.
According to the statement, the cNGN token is pegged 1:1 to the Nigerian naira, the country’s fiat currency, and is backed by Naira reserves held in designated commercial banks.
The stablecoin aims to bridge the gap between the naira and digital currencies in the global market through blockchain technology.
The cNGN aims to help Nigerians abroad send money to their families in Nigeria without waiting for remittances to go through. It also aims to eliminate the expensive fees associated with traditional international transactions.
Dolupo Balogun
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