Fintech companies join forces with Nigerian banks to introduce cNGN stablecoin Feb 27

By Sodiq Adelakun

Nigerian financial institutions, fintech companies, a blockchain firm, and the Africa Stablecoin Consortium have announced that they will be unveiling a Naira stablecoin called cNGN on February 27, 2024.

The consortium made this announcement in a statement released on Friday. The unveiling of the cNGN stablecoin will be dependent on the new regulatory sandbox recently introduced by the Central Bank of Nigeria.

According to the statement, the cNGN stablecoin will mark the beginning of a new era of financial flexibility by connecting the Nigerian naira with the global market through blockchain technology. It will be backed 1:1 by Naira reserves held in specific commercial banks.

The cNGN Stablecoin aims to transform the Naira into a versatile tool for worldwide remittances, commerce, trade, and investment.This move by Nigerian financial institutions and fintech companies is expected to enhance financial inclusion and facilitate seamless cross-border transactions.

The introduction of the cNGN stablecoin is seen as a significant step towards leveraging blockchain technology to drive economic growth and development in Nigeria.

“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,” it stated.

Recall that the apex bank lifted the ban on cryptocurrency transactions in Nigeria in December last year.

However, CBN barred cash withdrawals and issued other guidelines on cryptocurrency accounts.