The Central Bank of Nigeria (CBN) has granted approval for the launch of the Nigerian naira stablecoin (cNGN). Scheduled for release on February 27, 2024, the digital currency is backed by the Africa Stablecoin Consortium (ASC), comprising Nigerian financial institutions, fintechs, and blockchain experts.
Stablecoins, designed to maintain a constant value, are often pegged to another currency, commodity, or financial instrument. The ASC, in a statement on its website, highlighted that the cNGN stablecoin has met rigorous regulatory standards set by the CBN, the Nigerian Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit (NFIU).
The ASC emphasized its commitment to enhancing secure and compliant financial interactions, aiming to revolutionize the way people transact and engage with their money securely and seamlessly.
This usher in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology,” the statement reads.
The cNGN stablecoin, backed 1:1 by Naira reserves held in designated commercial banks, is set to transform the Naira into a dynamic tool for worldwide remittances, commerce, trade, and investment. Beyond serving as a currency, the cNGN aims to shorten settlement times, enabling swift global payments at a fraction of the cost.
The breakthrough is expected to pave the way for instantaneous financial transactions, seamlessly connecting Nigeria’s vibrant economy with international markets. It offers unprecedented efficiency in both domestic and global economic interactions.