Mohammed Shosanya
The Central Bank of Nigeria (CBN) has approved the launch of the Nigerian naira (cNGN) stablecoin and set to launch on February 27, 2024.
The cNGN is powered by the Africa Stablecoin Consortium (ASC), a consortium of Nigerian financial institutions, fintechs, and blockchain experts.
Stablecoins are cryptocurrencies uniquely designed to maintain a constant value, as they are often pegged or tied to another currency, commodity, or financial instrument.
In a statement on its website,the ASC said the cNGN stablecoin has met the regulatory standards and requirements as created by the CBN, the Nigerian Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit (NFIU).
The ASC said it is committed to enhancing secure and compliant financial interactions, transforming the manner people transact and engage with their money securely and effortlessly.
“This ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology,” the statement read.
“Backed 1:1 by Naira reserves held in designated commercial banks, the cNGN Stablecoin transforms the Naira into a dynamic tool for worldwide remittances, commerce, trade, and investment.
“More than just a currency, cNGN shortens settlement times, enabling payments that traverse the globe swiftly, mirroring the speed of a text message and at a fraction of the cost.
“This breakthrough paves the way for instantaneous financial transactions, seamlessly connecting Nigeria’s vibrant economy with international markets and offering unprecedented efficiency in both domestic and global financial interactions.”
According to the ASC, stablecoin can solve the what, where and when probless as people can pay for anything, anywhere, and at any time. With an easy tap, users can shop the world and pay in naira without the traditional challenges of currency conversion and hefty international transaction fees.
The consortium also disclosed “Supporting your loved ones back home becomes as simple as a quick tap on your phone” with the new innovation.
“No more standing in lines. With cNGN, funds land directly in their wallets within seconds, ready to fuel their dreams and brighten their days. No more distance, no more delays, just the magic of compliant virtual assets bridging the gap between hearts,” the ASC added.
“Cut out the red tape and sky-high fees of traditional international trade. With cNGN you can send and receive payments across the globe instantly enabling you to transact with national & international partners in any stablecoin currency, fueling economic growth and global success.
“Get paid, anywhere, instantly. Ditch the limitations of location and outdated payment systems. With cNGN, you can freelance for the world, right from your desk in Nigeria. Your talent knows no borders, so why should your income? Skip the bank queues and paperwork.”
