Nigeria’s Banks, Fintechs to Introduce cNGN Stablecoin
The Africa Stablecoin Consortium (ASC), consisting of Nigerian financial institutions, fintechs, and blockchain experts, is gearing up to launch the compliant Nigeria Naira (cNGN) stablecoin on February 27, 2024.
The consortium, leveraging the Central Bank of Nigeria’s (CBN) Regulatory Sandbox, aims to revolutionize financial transactions and create a dynamic bridge between the Nigerian Naira and the global market using blockchain technology.
The cNGN, backed 1:1 by Naira reserves in designated commercial banks, transforms the Naira into a versatile tool for global remittances, commerce, trade, and investment.
This stablecoin promises swift, low-cost settlements, mirroring the speed of a text message, connecting Nigeria’s economy seamlessly with international markets.
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Beyond being a currency, the cNGN facilitates efficient global transactions, allowing users to explore the world and engage with the global marketplace effortlessly.
Users can pay for anything, anywhere, and at any time with a simple tap, eliminating challenges associated with currency conversion and international transaction fees.
The consortium envisions various use cases for the cNGN, emphasizing its ability to make remittances as easy as sending a text message, enable cost-effective international trade, and empower freelancers to receive instant payments globally.
The stablecoin’s interoperability with multiple public blockchains further enhances its utility beyond Nigerian borders.Unlike the eNaira, solely developed by the apex bank, the cNGN is a consortium-driven stablecoin, compliant and regulated, pegged to the Naira in the Reserve Bank account.
This collaborative effort among Nigerian banks, FinTechs, and blockchain experts marks a significant step towards enhancing financial fluidity and efficiency in both domestic and global interactions.
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