The Central Bank of Nigeria (CBN) has officially approved a stablecoin pilot from the Africa Stablecoin Consortium (ASC). The regulatory group gave the nod for the ASC to launch its cNGN tokenized naira within CBN’s fintech sandbox starting February 27th, 2024.
The cNGN stablecoin is designed to complement CBN’s eNaira central bank digital currency. However, unlike the state-issued eNaira, cNGN will be overseen by the ASC – a private consortium of Nigerian banks and fintech firms.
The consortium touts cNGN will offer seamless transactions between the Nigerian naira and digital assets globally. It is pegged 1:1 to the naira and backed by reserves held at commercial banks. Approval came after extensive reviews confirming cNGN meets all regulatory standards issued by Nigerian authorities.
This pilot aligns with Nigeria’s shifting stance on cryptocurrencies and digital assets. Regulators aim to support local innovation after lifting previous restrictions. If successful, stablecoins like cNGN could greatly expand financial access for unbanked Nigerians and ease remittances. Along with the eNaira, tokenized naira pilots signal a digital transformation ahead for Africa’s largest economy.
#Nigeria #Stablecoin #Cryptocurrency #Blockchain #Finance
