CBN Approves NAIRA “Stablecoin” For February Launch

A consortium comprising Nigerian financial institutions, fintechs, and blockchain experts known as the Africa Stablecoin Consortium (ASC) is gearing up to launch a compliant Nigeria Naira (cNGN) stablecoin on February 27, 2024. This initiative comes following the release of the Regulatory Sandbox by the Central Bank of Nigeria (CBN).

In a statement released on Friday, the consortium highlighted the transformative impact of the cNGN stablecoin on financial transactions. The project aims to enhance secure and compliant financial interactions, revolutionizing how people securely and seamlessly engage with their money.

Key Points:

1. Launch Date: The cNGN stablecoin is set to launch on February 27, 2024.
2. Regulatory Sandbox: The launch is facilitated by the recently released Regulatory Sandbox by the Central Bank of Nigeria.
3. Financial Revolution: The consortium envisions that the cNGN stablecoin will revolutionize financial transactions, providing a dynamic tool for global remittances, commerce, trade, and investment.
4. Backed by Naira Reserves: The cNGN will be backed 1:1 by Naira reserves held in designated commercial banks, connecting the Naira to the global market through blockchain technology.
5. Global Reach: The stablecoin aims to shorten settlement times, enabling swift global payments at a fraction of the cost, connecting Nigeria’s economy with international markets efficiently.
6. Use Cases: Users of the cNGN stablecoin can explore a seamless and cost-effective way to engage with the global marketplace. It facilitates global payments, trade, and freelancing, offering efficiency and convenience.
7. Consortium Management: Unlike the eNaira developed solely by the Central Bank, the cNGN is managed by a consortium comprising Nigerian banks and FinTechs.
8. Interoperability: The cNGN boasts interoperability with multiple public blockchains, allowing for straightforward international transfers and expanding its global use.

The cNGN stablecoin is positioned as a compliant and regulated virtual asset, pegged to the Naira in the Reserve Bank account. It presents an alternative to traditional international trade and payment systems, providing users with a seamless and efficient financial experience.