Nigerian Banks Collaborate to Launch cNGN Stablecoin

Nigerian banks are joining forces to introduce a groundbreaking digital currency known as cNGN, designed to offer advantages to token holders and boost Nigeria's economy. This stablecoin, cNGN, operates similarly to popular stablecoins by being compatible with various public blockchains, making global transfers more accessible and expanding its utility on an international scale.

The key players behind the cNGN initiative include Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity.

"cNGN is a compliant and regulated stablecoin, supported by a consortium we are championing. It is backed by a reserve bank account linked to the Naira," stated an anonymous source within the project.

Unlike the central bank's digital currency, eNaira, the new stablecoin is developed on public blockchains such as Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. Leading blockchain and fintech companies power it, with major banks serving as licensed custodians.

It's important to note that cNGN complements eNaira rather than replacing it. Unlike eNaira, which offers a broader range of features and is issued by the Central Bank of Nigeria (CBN), cNGN is governed by a consortium involving Nigerian banks.

Sources suggest that CBN permitted Nigerian banks to engage in this endeavor because it aims to have the financial system support and facilitate blockchain technology, despite the cumbersome process required by the Securities and Exchange Commission of Nigeria to provide digital services.