Nigerian financial institutions, in collaboration with fintech companies, will introduce the cNGN stablecoin on February 27

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The Africa Stablecoin Consortium, comprised of Nigerian financial institutions, fintech, and blockchain experts, is gearing up to introduce a compliant Nigeria Naira stablecoin on February 27, 2024.

In a statement released, the consortium highlighted that the launch of the cNGN hinges on the Central Bank of Nigeria’s newly unveiled Regulatory Sandbox.

This stablecoin, named cNGN, is anticipated to innovate financial transactions, prioritizing secure and compliant financial interactions. The consortium aims to revolutionize how people securely and seamlessly engage with their money.

The ASC emphasized that the cNGN would transform the Nigerian Naira into a globally applicable currency, leveraging blockchain technology. Backed 1:1 by Naira reserves in designated commercial banks, the cNGN aims to turn the Naira into a versatile tool for global remittances, commerce, trade, and investment.

More than just a currency, the cNGN is expected to expedite settlement times, facilitating swift global payments akin to the speed of a text message and at a fraction of the typical cost.

This advancement promises instantaneous financial transactions, connecting Nigeria’s robust economy with international markets efficiently.

Moreover, the consortium expressed that the cNGN would enable users to explore the world, providing a seamless and cost-effective way to engage in the global marketplace while maintaining the familiarity of the Naira.

Highlighting the user experience, the ASC shared that sending money home using the cNGN would be as effortless and instant as sending a text message, eliminating the wait for remittances to clear.

Funds sent via cNGN would directly land in recipients’ wallets within seconds, simplifying support for loved ones back home.

Similar to established stablecoins like USDT and USDC, the cNGN will be compatible with various public blockchains, allowing for uncomplicated international transfers and expanding its global utility.

Unlike the eNaira, developed solely by the apex bank, the cNGN is a compliant and regulated stablecoin managed by a consortium, pegged to the Naira in the Reserve Bank account.

 

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