BNBCryptocurrency EducationNews

Nigeria’s Central Bank approves cNGN stablecoin for February launch

1 Mins read

The Africa Stablecoin Consortium (ASC) has received approval from the Central Bank of Nigeria (CBN) to pilot its cNGN stablecoin within the regulatory sandbox, with the launch scheduled for Feb. 27, 2024.

In a Jan. 4 blog update, the ASC, which encompasses a partnership of Nigerian banks and fintech operators, announced that the cNGN stablecoin meets the regulatory standards and requirements as established by the CBN, the Nigerian Securities and Exchange Commission and the Nigerian Financial Intelligence Unit.

The group also emphasized their ongoing engagement with these regulatory bodies to maintain compliance, safeguard consumer interests and uphold transparency in their operations.

The cNGN is designed to augment, rather than replace, the eNaira, the central bank digital currency (CBDC) that the CBN has issued. Unlike the eNaira, which the CBN created with broader capabilities, the ASC oversees the cNGN.

The stablecoin is interoperable with strategic blockchains like Bantu and BNB Smart Chain, with plans to expand its compatibility across major blockchain networks.

The cNGN token pegged 1:1 to the Nigerian naira, aims to facilitate seamless transactions between the naira and digital currencies globally. It is backed by Naira reserves in designated commercial banks.

The stablecoin is positioned to ease international transactions for Nigerians abroad, offering a cost-effective alternative to traditional remittance methods.

The initiative aligns with the CBN’s revised stance on cryptocurrencies. A Dec. 22, 2023 circular revealed the lifting of the 2021 ban on Nigerian banks’ involvement in cryptocurrency transactions, recognizing the growing global trend and inevitable integration of cryptocurrencies in Nigeria’s financial landscape.

Nigeria’s journey towards digital currency began with the introduction of a cashless policy in 2012. The initiative aimed to enhance the efficiency of the payment system, lower the costs of banking services, and bolster the effectiveness of monetary policy by reducing reliance on cash transactions.

However, the adoption rate of cNGN’s predecessor, CBDC eNaira, has been low since its launch on Oct. 25, 2021, despite nearly 40 million people in the country needing a bank account. Nigeria’s central bank has struggled to convince citizens to use CBDC, but the digital currency has attracted only one in 200 citizens.


1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Related posts

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥 will not disclose your account information to any 3rd parties.