Nigeria Banks Collaborate on New cNGN Stablecoin

Nigerian banks are working together to develop and manage the cNGN, a new stablecoin that is intended to benefit token holders as well as the Nigerian economy.

The cNGN token is correlated with and backed by the Nigerian naira, the nation's fiat currency, according to anonymous sources within the project.

Similar to well-known stablecoins, the cNGN has compatibility with multiple public blockchains, allowing for simple international transfers and expanding its use globally.

Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity are among the partners in the cNGN initiative.

“cNGN is a compliant and regulated consortium-backed stablecoin that we have been advocating. It maintains a peg to the Naira in a reserve bank account.”

The new stablecoin is created on public blockchains (Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron), in contrast to the central bank's eNaira digital currency.

Leading fintech and blockchain companies are driving it, and big banks are serving as authorized custodians.

The eNaira is complemented with the cNGN, not replaced by it. In contrast to the eNaira, which was developed by the Central Bank of Nigeria (CBN) and has more features, the cNGN is managed by a group of Nigerian banks.

The sources claim that the CBN permitted Nigerian banks mainly because it wants the financial system to support and enable blockchain technology, in spite of the onerous procedure that the Nigerian Securities and Exchange Commission requires in order to provide digital services.

Sources:

https://cointelegraph.com/news/nigerias-top-banks-collaborate-on-new-cngn-stablecoin

https://techpoint.africa/2023/12/23/nigerian-banks-plans-develop-stablecoin/