Nigerian banks, fintechs to launch naira stablecoin in February
The Africa Stablecoin Consortium (ASC), comprised of Nigerian financial institutions, fintechs, and blockchain experts, is gearing up to launch a compliant Nigeria Naira stablecoin (cNGN) on February 27, 2024.
cNGN stablecoin is expected to bring about a transformation in financial transactions, offering a secure and compliant means for individuals to transact and engage with their money. The consortium expressed its commitment to enhancing the security and seamlessness of financial interactions through this project.
The use of stablecoins pegged to the value of traditional fiat currencies, has gained traction globally as a means to facilitate digital transactions. Like well-known stablecoins such as USDT (Tether) and USDC (USD Coin), the cNGN (Nigeria Naira stablecoin) will be designed to be compatible with multiple public blockchains. This compatibility will facilitate straightforward international transfers, making the stablecoin usable on a global scale. The cNGN is set to mirror the functionality of major stablecoins, and its interoperability with various public blockchains will enable seamless transactions across borders. This interoperability feature enhances the utility of the cNGN, making it a versatile and globally accessible digital asset. Nigerians can anticipate cross-border transactions with the new token, but its ability to navigate challenges, akin to those faced by the embattled eNaira, Nigeria's central bank digital currency (CBDC), remains uncertain and will be revealed over time.