Nigeria’s Central Bank Approves cNGN Stablecoin
The Stablecoin Consortium of Africa (ASC) has granted permission to cNGN issuer. The firm noted that the stablecoin namely cNGN completes the regulatory guidelines and standards set by Central Bank of Nigeria (CBN) and the local SEC.
As per the new statement, the new stablecoin is set for a debut on 27th February, 2024. ASC is a joint venture between various Nigerian banks and fintech firms.
Joint Venture Between Fintech Firms and Nigerian Banks
The association published a new blog spot to explain the details regarding the new stablecoin. The blog post stated that cNGN is compliant with the regulatory requirements of Nigerian SEC and Financial Intelligence Unit.
Furthermore, the association also noted that the firm is working in tandem with various regulatory agencies to ensure legality, investor protection, and regular audit reports. It is important to note that cNGN serves as a compliment rather than substitute for eNaira.
ASC to Regulate the New Stablecoin cNGN
ASC has in the blog post that it is working on managing the new stablecoin project namely cNGN. The article explained that the digital tender of CBN i.e. eNaira has more functionality.
However, ASC has been appointed to supervise cNGN. This stablecoin can be hosted on various blockchain networks such as Bantu and BNB Smart Chain. At the same time, the stablecoin has plans for expansion to all major blockchain networks.
cNGN is backed by Nigerian Naira in 1:1 ratio. The reserves are stored in various designated commercial bank accounts. The main aim of the stablecoin is to bridge the gap between digital currencies in the international market using blockchain technology.
cNGN also intends to assist overseas Nigerian citizens for remittance payments without using forex exchanges. Furthermore, this process will also reduce expensive cost of sending money overseas.
CBN Implements Blockchain Technology in the Federal Banking Network
CBN has also commented in a recent blog post that the federal agency is leveraging the blockchain technology to update the existing system.
The central bank sent a prospectus to regulated banks on 22nd December, 2023 regarding increased global demand and utility of cryptocurrencies. At the same time, the bank lifted regulator constraints imposed on Nigerian banks to facilitate cryptocurrency transactions.
Finna Protocol and various industry leaders in the stablecoin sector have noted that various businesses are sure to support cNGN stablecoin once it goes live. Cryptocurrency analyst, Rume Ophi, noted that the crypto community appreciates the new stablecoin.
He also stated that the success of cNGN is directly associated with stakeholder investment and efforts of the consortium towards spreading awareness within the local community about its utility and features. He also stated various trading platforms may list cNGN on account of Nigeria’s position as the blockchain hub of Africa.
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