January 10, 2024

Central Bank of Nigeria Prepares for Launch of cNGN Stablecoin

The Central Bank of Nigeria (CBN) is gearing up to unveil its naira stablecoin, cNGN, on February 27, 2024, as part of an inaugural program within the CBN's regulatory sandbox.

Scheduled for launch on February 27, 2024, the Central Bank of Nigeria (CBN) is set to introduce its naira stablecoin, cNGN, as part of a pilot initiative conducted within the regulatory sandbox.

The Africa Stablecoin Consortium, a collaboration of Nigerian banks and fintech entities, has confirmed that the cNGN stablecoin adheres to the CBN's regulations. Collaborating closely with regulatory bodies, they are ensuring that the stablecoin is secure, transparent, and fully compliant.

Distinguishing itself from the CBN's eNaira digital currency, the cNGN is under the management of the Africa Stablecoin Consortium. Integrated with various blockchains such as Bantu and BNB Smart Chain, it is on track to become compatible with additional blockchains in the near future.

Functioning as a digital representation of the Nigerian naira, the cNGN is backed by reserves held in banks. Its primary objective is to facilitate seamless global transactions involving the Nigerian currency, providing convenience for Nigerians residing abroad.

Unlike the eNaira, the cNGN is built on public blockchains, offering greater flexibility. With integration into multiple blockchains, including Bantu and BNB Smart Chain, and plans for further compatibility, the stablecoin aims to streamline international money transfers.

This development signals a notable shift in the stance of the Nigerian CBN towards blockchain and cryptocurrency. In a significant move in December, the CBN lifted the ban on Nigerian banks engaging with cryptocurrencies, acknowledging the escalating global interest in these digital assets.

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