The Central Bank of Nigeria (CBN) has given approval to the Africa Stablecoin Consortium (ASC) to pilot the cNGN stablecoin in its regulatory sandbox. The cNGN stablecoin, developed by a collaboration of Nigerian banks and fintech operators, is set to launch on February 27, 2024.
The Africa Stablecoin Consortium has stated that the cNGN stablecoin complies with the regulatory requirements and standards set by the CBN, the Nigerian Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit (NFIU). The group is actively engaging with regulators to ensure compliance, consumer protection, and transparency.
The cNGN stablecoin is designed to complement the eNaira, which was created by the CBN with broader capabilities. Unlike the eNaira, the cNGN is overseen by the Africa Stablecoin Consortium. Currently, the cNGN is interoperable with strategic blockchains like Bantu and BNB Smart Chain, with plans to expand compatibility to all major blockchain networks in the future.
The cNGN token is pegged 1:1 to the Nigerian naira, the country’s fiat currency, and is backed by Naira reserves held in designated commercial banks. The stablecoin aims to bridge the gap between the Nigerian Naira and digital currencies in the global market using blockchain technology.
One of the key objectives of the cNGN stablecoin is to facilitate faster and more affordable remittances from Nigerians abroad to their families in Nigeria. By leveraging blockchain technology, the cNGN eliminates the expensive fees associated with traditional international transactions.
Unlike the eNaira central bank digital currency, the cNGN is developed on public blockchains such as Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. This allows for interoperability with various public blockchains, enabling global transfers and expanding its international use.
The CBN has expressed its support for blockchain technology and aims to foster its adoption within the financial system. In a circular sent to banks on December 22, the CBN lifted restrictions on Nigerian banks facilitating cryptocurrency transactions, recognizing the increasing global demand and adoption of crypto.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Africa |
| Countries | 🇳🇬 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | Bantu, BNB Smart Chain, Nigerian Securities and Exchange Commission, Africa Stablecoin Consortium, Central Bank of Nigeria, Nigerian Financial Intelligence Unit |
| Currencies | enaira, ngn, bantu, BNB, cngn |
| Securities | None |
