CBN approves naira stablecoin, to launch February 27
The Central Bank of Nigeria (CBN) has approved the launch of the Nigerian naira (cNGN) stablecoin.
Launching on February 27, 2024, the cNGN represents a significant development powered by the Africa Stablecoin Consortium (ASC).
This consortium, comprising Nigerian financial institutions, fintechs, and blockchain experts, has orchestrated a stablecoin designed to maintain a constant value, bringing forth a new era in financial dynamics.
In its commitment to secure and compliant financial interactions, the ASC ensures that the cNGN stablecoin meets regulatory standards established by the Central Bank of Nigeria (CBN), the Nigerian Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit (NFIU).
This adherence to regulatory standards sets the stage for the cNGN to serve as a transformative tool for global financial transactions through blockchain technology. Read from their website
With a 1:1 backing by Naira reserves held in designated commercial banks, the cNGN stablecoin offers a dynamic solution for worldwide remittances, commerce, trade, and investment. It holds the potential to significantly shorten settlement times, enabling payments that traverse the globe swiftly and at a fraction of the cost compared to traditional methods.
The ASC envisions the cNGN as more than just a currency; it becomes a catalyst for instantaneous financial transactions, seamlessly connecting Nigeria’s vibrant economy with international markets. This breakthrough not only enhances domestic financial interactions but also fosters efficiency on a global scale.
Users of the cNGN can seamlessly pay for anything, anywhere, and at any time. The stablecoin eliminates the traditional challenges of currency conversion and hefty international transaction fees. It enables users to shop globally with a simple tap, breaking down barriers for international transactions.
The ASC emphasizes that the cNGN enables users to support their loved ones back home with ease. Through quick taps on their phones, funds land directly in the recipients’ wallets within seconds, offering a swift and efficient means to fuel dreams and brighten days.
This unveiling comes over two years after the Central Bank of Nigeria initially banned digital currency transactions.
However, in December 2023, the CBN signaled a shift from its initial position by issuing fresh operational guidelines on virtual assets service providers (VASPs) to all banks and other financial institutions (OFIs).
This shift marks a departure from the previous restrictions on cryptocurrency transactions, indicating a more nuanced approach to the evolving landscape of digital assets.
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CBN approves naira stablecoin, to launch February 27