The Central Bank of Nigeria has granted the Africa Stablecoin Consortium (ASC) approval to introduce Compliant Nigerian naira stableCoin (cNGN) within its regulatory sandbox.
This marks a pivotal moment in the Nigerian financial
landscape, as the ASC, comprising leading financial institutions, fintech
innovators, and blockchain experts in the country, focuses on monetary
transactions.
Scheduled to go live on February 27, 2024, the
cNGN is backed 1:1 by naira reserves in designated commercial banks. It is expected to
propel the naira beyond borders, offering swift, cost-effective transactions
on a global scale, the ASC mentioned in its official statement.
According to ASC, cNGN will complement Nigeria‘s
payment platforms, paving the way for advancements in the utilization of the Central Band Digital Currency’s regulatory framework and open banking.
This stablecoin aims to build a
future-proof financial system that leverages technology to streamline
transactions and enhance security for Nigeria. ASC envisions a future where cryptocurrencies
complement traditional finance, creating a robust, inclusive, and future-proof
financial landscape for Nigeria.
Nigeria’s efforts to foster widespread adoption of
its central bank digital currency, the eNaira, have been met with ongoing
challenges despite initial advancements. Last year, the country announced
plans to alter the model for the eNaira to…
