Nigeria Set to Introduce Compliant Naira Stablecoin in Global Markets
A consortium comprising Nigerian financial institutions, fintechs, and blockchain experts, known as the Africa Stablecoin Consortium (ASC), is gearing up to introduce a compliant Nigeria Naira (cNGN) stablecoin on February 27, 2024.
In a statement released on Friday, the consortium announced that the launch of the cNGN stablecoin is aligned with the recently established Regulatory Sandbox by the Central Bank of Nigeria (CBN). This initiative aims to revolutionize financial transactions by enhancing secure and compliant financial interactions, transforming the way people engage with their money securely and seamlessly.
The ASC highlighted that the cNGN stablecoin is set to transform the Nigerian Naira into a currency suitable for global settlements. By being backed 1:1 by Naira reserves held in designated commercial banks, the cNGN aims to facilitate worldwide remittances, commerce, trade, and investment. It is expected to shorten settlement times, enabling swift global payments at a fraction of the cost, thereby connecting Nigeria’s economy with international markets more efficiently.
The consortium also emphasized the versatility of the cNGN stablecoin, stating that it will provide users with a seamless and cost-effective way to engage in global transactions while using the Naira as their currency. It will eliminate the traditional challenges of currency conversion and hefty international transaction fees, allowing users to pay for goods and services globally with ease.
The ASC further outlined various use cases for the cNGN stablecoin, including effortless and instant remittances, cost-effective international trade, and seamless receipt of global payments, thereby empowering individuals and businesses to transact globally with ease.
It is important to note that the cNGN stablecoin is a compliant and regulated consortium-driven initiative, pegged to the Naira in the Reserve Bank account. Unlike the eNaira developed solely by the apex bank, the cNGN is managed by a consortium and is designed to be compatible with multiple public blockchains, ensuring its interoperability and global reach.
Source: Nairametrics
