A consortium of Nigerian financial institutions, fintech, and blockchain experts, the Africa Stablecoin Consortium is set to launch a compliant Nigeria Naira stablecoin on February 27, 2024.
The consortium in a statement issued on Friday said the launch of the cNGN is hinged on the new Regulatory Sandbox released by the Central Bank of Nigeria.
According to the consortium, the cNGN stablecoin would revolutionise financial transactions. Through the project, the consortium said it is committed to enhancing secure and compliant financial interactions, revolutionising the way people transact and engage with their money securely and seamlessly.
While noting that the stablecoin will transform the Nigerian Naira into a currency for global settlements, the ASC said, “The cNGN ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology. 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.”
The statement added that the cNGN stablecoin will allow users to explore the World and experience a seamless and cost-effective way to engage with a global marketplace, with the familiarity of your Naira.
“cNGN extends your financial reach far beyond Nigeria’s borders and acts as a global bridge, so you can pay for anything, anywhere, and at any time– all with a seamless tap. Shop the World, Pay in Naira without the traditional challenges of currency conversion and hefty international transaction fees,” it added.
Giving further insights into the use cases of the cNGN, the consortium said, “Sending money home feels like sending a text message, effortless and instant: No more agonising days waiting for remittances to clear. With cNGN, supporting your loved ones back home becomes as simple as a quick tap on your phone. 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.”
Saturday PUNCH reports that the cNGN similar to well-known stablecoins like USDT and USDC, will be compatible with multiple public blockchains, enabling straightforward international transfers and expanding its use globally.
The cNGN is a compliant and regulated consortium-driven stablecoin, pegged to the Naira in the Reserve Bank account. Unlike the eNaira, which is developed solely by the apex bank, the cNGN is managed by a consortium.