A consortium of Nigerian financial institutions, fintechs, and blockchain experts, the Africa Stablecoin Consortium (ASC) is set to launch a compliant Nigeria Naira (cNGN) stablecoin on February 27, 2024.
Nairametrics had first reported that Nigerian banks and FinTechs are collaborating to develop and manage the cNGN. Similar to well-known stablecoins like USDT and USDC, the cNGN will be compatible with multiple public blockchains, enabling straightforward international transfers and expanding its use globally.
The consortium disclosed this in a statement issued on Friday. The launch of the cNGN is riding on the back of the Regulatory Sandbox recently released by the Central Bank of Nigeria (CBN).
According to the consortium, the cNGN stablecoin would revolutionize financial transactions. Through the project, the consortium said it is committed to enhancing secure and compliant financial interactions, revolutionizing the way people transact and engage with their money securely and seamlessly.
Transformation of the Naira
While noting that the stablecoin will transform the Nigerian Naira into a currency for global settlements, the ASC said:
- “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 do with the cNGN
According to the consortium, the cNGN stablecoin will allow users to explore the World and experience a seamless and cost-effective way to engage with a global marketplace, with the familiarity of your Naira.
cNGN extends your financial reach far beyond Nigeria’s borders and acts as a global bridge, so you can pay for anything, anywhere, and at any time– all with a seamless tap. Shop the World, Pay in Naira without the traditional challenges of currency conversion and hefty international transaction fees.
Giving further insights into the use cases of the cNGN, the consortium said:
- “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.
Mirroring the functionality of major stablecoins, the cNGN boasts interoperability with other public blockchains. This feature enables seamless global transfers, extending its utility beyond Nigerian borders.
The cNGN is a compliant and regulated consortium-driven stablecoin, pegged to the Naira in the Reserve Bank account. Unlike the eNaira, which is developed solely by the apex bank, the cNGN is managed by a consortium.
Weldone. This is exactly what we need to stabilise our economy