Central Bank of Nigeria Approves Africa Stablecoin Consortium to Pilot cNGN Stablecoin in Regulatory Sandbox
The Central Bank of Nigeria (CBN) has granted approval to the Africa Stablecoin Consortium (ASC) to launch the cNGN stablecoin in its regulatory sandbox.
The stablecoin is set to be introduced on February 27, 2024, the Africa Stablecoin Consortium, a collaborative effort between Nigerian banks and fintech operators, said in a Friday blog post .
The consortium detailed that the cNGN stablecoin adheres to the regulatory requirements and standards established by the CBN, the Nigerian Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit (NFIU).
The consortium emphasized its commitment to engaging with regulators to ensure compliance, consumer protection, and transparency throughout the project.
Notably, the cNGN stablecoin is designed to complement, rather than replace, the eNaira, which was introduced by the CBN with broader capabilities.
The Africa Stablecoin Consortium will oversee the cNGN stablecoin, which is currently interoperable with strategic blockchains such as Bantu and BNB Smart Chain.
Future plans include expanding its compatibility to encompass all major blockchain networks.
The cNGN stablecoin is pegged 1:1 to the Nigerian naira, the country’s fiat currency, with its value backed by reserves held in designated commercial banks.
Its primary objective is to bridge the gap between the Nigerian naira and digital currencies in the global market by utilizing blockchain technology.
One of the key advantages of the cNGN stablecoin is its potential to facilitate remittances from Nigerians abroad to their families within the country.
By leveraging blockchain technology, the stablecoin enables faster and more cost-effective transfers, eliminating the need for lengthy
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