The Africa Stablecoin Consortium (ASC), comprising Nigerian financial institutions, fintechs, and blockchain experts, is scheduled to launch a compliant Nigeria Naira (cNGN) stablecoin on February 27, 2024.
This announcement came through a statement issued by the consortium on Friday, and the launch of the cNGN is predicated on the recently released Regulatory Sandbox by the Central Bank of Nigeria (CBN).
The consortium emphasized that the cNGN stablecoin is poised to revolutionize financial transactions, with a commitment to enhancing secure and compliant financial interactions. Their goal is to transform the way individuals conduct transactions and engage with their money securely and seamlessly.
Regarding the transformation of the Naira, the ASC highlighted that the stablecoin will position the Nigerian Naira as a currency for global settlements. The ASC stated:
“This (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.”
What you can achieve with the cNGN
As per the consortium, the cNGN stablecoin opens up a realm of possibilities for users, providing a seamless and cost-effective means to engage with the global marketplace while retaining the familiarity of the Naira.
The cNGN serves as a financial conduit, extending your reach well beyond Nigeria’s borders and functioning as a global bridge. This enables users to effortlessly pay for anything, anywhere, and at any time with a simple tap. Shop globally and settle transactions in Naira without encountering the traditional challenges associated with currency conversion and substantial international transaction fees.
Offering additional insights into the potential use cases of the cNGN, the consortium stated:
“Sending money home feels like sending a text message, effortless and instant: No more agonizing 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.
“Trade Like a Pro, Cost-Effectively. 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. Receive payments from clients across the globe, directly deposited into your cNGN wallet in minutes.
What you should be aware of
There is a collaborative effort among Nigerian banks and FinTechs to develop and oversee the cNGN. Drawing parallels with well-established stablecoins such as USDT and USDC, the cNGN is designed to be compatible with multiple public blockchains, facilitating uncomplicated international transfers and broadening its global applicability.
Emulating the functionalities of major stablecoins, the cNGN features interoperability with various public blockchains, providing a mechanism for seamless global transfers and extending its usefulness beyond the confines of Nigeria.
Crucially, the cNGN stands out as a compliant and regulated stablecoin driven by a consortium, with its value pegged to the Naira in the Reserve Bank account. In contrast to the eNaira, exclusively developed by the apex bank, the cNGN is under the management of a consortium.
