The Central Bank of Nigeria may be considering venturing into another digital currency similar to the now abandoned eNaira as the Africa Stablecoins Consortium (ASC) is in discussion with the apex bank on the launch of compliant Nigerian Naira StableCoin (cNGN).
Whilst the ASC in a blogpost on its website said the naira stablecoin will be launched on February 27, 2024, LEADERSHIP Weekend findings reveal that there was a meeting at the apex bank but could not confirm the full involvement of the CBN in the launch.
ASC had said it is in “an alliance of prominent financial institutions, fintech innovators, and blockchain experts, set to transform the dynamics of monetary transactions.”
Recall that the apex bank had recently lifted restrictions on virtual and digital currency accounts by financial institutions in the country.
The CBN in the circular had categorically prohibited banks and other financial institutions from holding trading and/or transacting in virtual currencies on their own accounts. This was stated in the guidelines on operations of bank accounts for virtual assets service providers that was recently released.
According to ASC, it is committed to enhancing secure and compliant financial interactions, revolutionising the way people transact and engage with their money securely and seamlessly. The consortium explained that the cNGN is aimed at financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology.
It furthered that “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. 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.”
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.
