Nigeria’s top banks collaborate on new cNGN stablecoin

    2023.12.23 | exchangesranking | 365onlookers

    Principal Nigerian banks are collaborating to create and oversee the cNGN stablecoin, a novel digital currency designed to bring advantages to both token-holders and the Nigerian economy.

    According to sources from within the project who prefer to remain anonymous, The cNGN token is entirely supported, ensuring a direct correlation with each Naira (N1) held by these leading banks.

    Similar to popular stablecoins, the cNGN offers interoperability with various public blockchains, facilitating effortless global transfers and broadening its use internationally.

    Principal collaborators in the cNGN initiative comprise Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity, presenting a noteworthy alliance within the Nigerian financial industry.

    “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.”

    Unlike the eNaira central bank digital currency (CBDC), this token is developed on public blockchains (Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron). It is driven by leading blockchain tech companies, fintech, and significant banks acting as licensed custodians for the token.

    Related: Nigeria’s central bank loosens rules for banks facilitating crypto transactions

    The cNGN serves as a complement, not a substitute, for the eNaira. Unlike the eNaira, created by the Central Bank of Nigeria (CBN) with broader capabilities, the cNGN is overseen by a consortium involving Nigerian banks.

    According to the sources, the CBN allowed Nigerian banks primarily because they want the financial system to support/facilitate blockchain technology, and they know the cumbersome processes the Nigerian SEC designed to operate a digital service.

    This story is still unfolding; further details will be provided as they emerge.

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