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A consortium comprising Nigerian financial institutions, fintech, and blockchain experts, known as the Africa Stablecoin Consortium (ASC), is gearing up to introduce a compliant Nigeria Naira stablecoin, named cNGN, on February 27, 2024.
In a statement released on Friday, the consortium announced that the launch of cNGN aligns with the guidelines of the new Regulatory Sandbox introduced by the Central Bank of Nigeria (CBN). The stablecoin is expected to bring about a transformation in financial transactions by facilitating secure and compliant interactions, revolutionizing the way individuals engage with their money securely and seamlessly.
The ASC emphasized that the cNGN stablecoin will turn the Nigerian Naira into a globally recognized currency for settlements. Backed 1:1 by Naira reserves held in designated commercial banks, the cNGN is poised to become a dynamic tool for worldwide remittances, commerce, trade, and investment.
The statement outlined the transformative features of the stablecoin, stating, "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."
Furthermore, the ASC highlighted the potential of the cNGN to facilitate instantaneous financial transactions, connecting Nigeria's economy with international markets while ensuring efficiency in both domestic and global financial interactions.
The consortium noted that the cNGN stablecoin will offer users a seamless and cost-effective way to engage with the global marketplace while retaining the familiarity of the Naira. It emphasized the ability to shop globally and pay in Naira without traditional challenges related to currency conversion and hefty international transaction fees.
The ASC provided insights into the use cases of cNGN, emphasizing its role in facilitating instant remittances and supporting loved ones back home. The stablecoin is expected to provide a quick and efficient solution, eliminating the delays associated with traditional remittance processes.
Notably, the cNGN, akin to well-known stablecoins like USDT and USDC, will be compatible with multiple public blockchains, allowing straightforward international transfers and expanding its use globally. It is positioned as a compliant and regulated stablecoin managed by a consortium, distinguishing it from the eNaira developed solely by the apex bank.
