In a groundbreaking move set to transform Nigeria’s financial landscape, a consortium comprising Nigerian financial institutions, fintech companies, and blockchain experts has announced the imminent launch of the compliant Nigeria Naira stablecoin, known as cNGN. The highly anticipated launch is scheduled for February 27, 2024, and marks a pivotal moment in the integration of blockchain technology into the country’s monetary system.
The Africa Stablecoin Consortium (ASC), in a statement released on Friday, highlighted that the launch of the cNGN is closely tied to the innovative Regulatory Sandbox recently unveiled by the Central Bank of Nigeria. The consortium expressed its commitment to revolutionizing financial transactions, emphasizing the importance of secure and compliant financial interactions that will redefine the way people engage with their money.
The cNGN stablecoin is poised to play a transformative role in the global financial landscape, with the ASC stating, “The cNGN ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology.” The stablecoin is backed 1:1 by Naira reserves held in designated commercial banks, providing a secure foundation for its use in worldwide remittances, commerce, trade, and investment.
More than just a currency, the cNGN is set to significantly reduce settlement times, facilitating payments that can traverse the globe swiftly and at a fraction of the cost. The ASC envisions the stablecoin as a tool that will connect Nigeria’s vibrant economy with international markets, offering unprecedented efficiency in both domestic and global financial interactions.
The ASC further outlined the key features and advantages of the cNGN stablecoin, emphasizing its role in transforming the Naira into a dynamic tool for global transactions. It envisions a seamless and cost-effective way for users to engage with the global marketplace while retaining the familiarity of their local currency. The stablecoin aims to empower users to “Shop the World, Pay in Naira” without the traditional challenges of currency conversion and high international transaction fees.
One notable aspect of the cNGN stablecoin is its compatibility with multiple public blockchains, similar to well-known stablecoins such as USDT and USDC. This feature enables straightforward international transfers, making the cNGN a versatile and globally accessible digital asset.
The consortium highlighted the user-friendly nature of the cNGN, comparing it to well-known messaging applications. “Sending money home feels like sending a text message, effortless and instant,” the statement read. The cNGN aims to simplify the process of supporting loved ones by eliminating the waiting period for remittances to clear, ensuring funds land directly in recipients’ wallets within seconds.
It’s crucial to note that the cNGN distinguishes itself from the eNaira, a digital currency developed solely by the Central Bank of Nigeria. The cNGN is a consortium-driven stablecoin, managed collaboratively to ensure compliance and regulation, with its value pegged to the Naira in the Reserve Bank account.
As Nigeria prepares to embrace the era of digital finance, the cNGN stablecoin stands out as a pioneering initiative, offering a glimpse into the future of global financial interactions. The launch on February 27, 2024, is expected to mark a significant milestone in the journey towards a more connected, efficient, and inclusive financial ecosystem for Nigeria and beyond.
https://punchng.com/nigerian-banks-fintechs-to-launch-cngn-stablecoin-february-27/
