A consortium comprising Nigerian financial institutions, fintech experts, and blockchain specialists, known as the Africa Stablecoin Consortium (ASC), is gearing up to unveil a compliant Nigerian Naira stablecoin, the cNGN, on February 27, 2024. This initiative aligns with the Central Bank of Nigeria’s newly introduced Regulatory Sandbox.
In a statement released on Friday, the consortium expressed its commitment to revolutionizing financial transactions by providing a secure and compliant platform for seamless interactions with money. The cNGN stablecoin, backed 1:1 by Naira reserves in designated commercial banks, aims to transform the Nigerian Naira into a global settlement currency.
The ASC outlined the transformative potential of the cNGN, stating, “The cNGN ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology.” Beyond being a mere currency, the stablecoin promises faster settlement times, facilitating swift global payments at a fraction of the traditional cost.
According to the consortium, the cNGN will empower users to engage with the global marketplace seamlessly and cost-effectively while retaining the familiarity of the naira. The stablecoin is designed to break down barriers associated with currency conversion and high international transaction fees, enabling users to shop globally and pay in Naira effortlessly.
Highlighting the various use cases, the consortium emphasized the simplicity and immediacy of sending money home using cNGN. It eliminates the waiting period for remittances, allowing funds to land directly in recipients’ wallets within seconds. The compliant virtual asset is positioned to bridge gaps, connecting hearts across distances with its efficient and instantaneous financial capabilities.
Unlike the eNaira, exclusively developed by the apex bank, the cNGN is a consortium-driven stablecoin, offering compliance and regulation. The stablecoin, similar to established counterparts like USDT and USDC, will be compatible with multiple public blockchains, facilitating straightforward international transfers and expanding its global utility.
The launch of the cNGN is anticipated to introduce a paradigm shift in Nigeria’s financial landscape, providing users with a versatile and globally accessible digital asset.