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A consortium of Nigerian banks, fintechs and blockchain companies is developing the first regulated Naira stablecoin, cNGN.
The new stablecoin cNGN will be a consortium-based compliant and regulated Naira <a href="https://crypto.news/tag/stablecoin/" rel="noopener noreferrer nofollow">stablecoin</a>. cNGN will be pegged 1:1 to NGN, but unlike previous stablecoin drafts, it will be owned by Nigerian banks and will be legal tender.
According to <a href="https://www.forbes.com/sites/willyakowicz/2023/12/24/king-of-cones-bryan-gerber-hara-supply-cannabis-preroll/?" target="_blank" rel="noopener noreferrer nofollow">Forbes</a> sources, the launch is planned for 2024.
Unlike previous versions, cNGN will be a cryptocurrency — like other stablecoins — and not a CBDC. Also, the coin will be serviced by the consortium and owned by its banks.
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 “Nevertheless, there are still many unknowns about the cNGN that will need to be clarified by the consortium, such as the blockchain it will use and the planned apps and services for consumers.” <cite>Forbes</cite>
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You might also like: <a href="https://crypto.news/nigerian-central-bank-lifts-ban-on-crypto-transactions/" rel="noopener noreferrer nofollow"> Nigerian central bank lifts ban on crypto transactions </a>
It is noteworthy that just a day ago, transactions with cryptocurrencies <a href="https://crypto.news/central-bank-of-nigeria-reverses-crypto-ban/" rel="noopener noreferrer nofollow">were allowed</a> in Nigeria. Previous rules introduced by the country’s Central Bank in February 2021 prohibited credit institutions from conducting cryptocurrency-related transactions. The lifting of the ban stems from the understanding that cryptocurrencies play an important role in global financial systems and their use in Nigeria is inevitable.
Nigeria has already made several attempts to transition to a digital currency. In 2012, <a href="https://crypto.news/tag/Nigeria/" rel="noopener noreferrer nofollow">Nigeria</a>&nbsp;introduced its cashless policy on the premise that moving away from cash would make its payment system more efficient, reduce the cost of banking services, and improve the effectiveness of monetary policy.
However, the adoption rate of cNGN’s predecessor, a <a href="https://crypto.news/what-countries-have-cbdc-in-2023-and-how-they-shape-crypto-future/" rel="noopener noreferrer nofollow">CBDC</a> called <a href="https://crypto.news/nigerias-central-bank-confident-about-local-cbdc-enaira/" rel="noopener noreferrer nofollow">eNaira</a>, has been low since its launch on Oct. 25, 2021, despite nearly 40 million people in the country needing a bank account. Nigeria’s central bank has struggled to convince citizens to use&nbsp;CBDC, but the digital currency <a href="https://www.bloomberg.com/news/articles/2022-10-25/shunned-digital-currency-looks-for-street-credibility-in-nigeria?leadSource=uverify%20wall" target="_blank" rel="noopener noreferrer nofollow">has attracted</a>&nbsp;only one in 200 citizens.
You might also like: <a href="https://crypto.news/nigeria-finally-implements-its-blockchain-policy/" rel="noopener noreferrer nofollow"> Nigeria finally implements its blockchain policy </a>

Nigeria to launch first regulated stablecoin

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Other articles published on Dec 28, 2023

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