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Nigeria’s central bank greenlights cNGN stablecoin to launch in February

CryptofreePress Staff by CryptofreePress Staff
January 5, 2024
in Blockchain
0
Nigeria’s central bank greenlights cNGN stablecoin to launch in February

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The Central Financial institution of Nigeria (CBN) has authorised the Africa Stablecoin Consortium (ASC) to pilot the cNGN stablecoin in its regulatory sandbox. The brand new stablecoin is to be launched on Feb. 27, 2024. 

In a weblog put up, the ASC — a collaboration of Nigerian banks and fintech operators — stated the cNGN stablecoin complies with the regulatory necessities and requirements set by the CBN, the Nigerian Securities and Trade Fee and the Nigerian Monetary Intelligence Unit. The group stated it’s partaking with the regulators to make sure compliance, shopper safety and transparency.

The cNGN serves as a complement, not a substitute, for the eNaira, which is the central financial institution digital forex (CBDC) issued by the CBN. Not like the eNaira, which the CBN created with broader capabilities, the ASC oversees the cNGN. The stablecoin is at present interoperable with strategic blockchains like Bantu and BNB Good Chain, with plans to increase compatibility to all main blockchain networks quickly.

In accordance with the weblog put up, the cNGN token is pegged 1:1 to the Nigerian naira, the nation’s fiat forex, and is backed by Naira reserves held in designated business banks. The stablecoin goals to bridge the hole between the naira and digital currencies within the world market by blockchain know-how.

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The cNGN goals to assist Nigerians overseas ship cash to their households in Nigeria with out ready for remittances to undergo. It additionally goals to remove the costly charges related to conventional worldwide transactions.

In accordance with the weblog put up, the CBN needs the monetary system to help and facilitate blockchain know-how. In a round despatched to banks on Dec. 22, 2023 the CBN acknowledged the rising world demand for and adoption of crypto and lifted restrictions on Nigerian banks facilitating cryptocurrency transactions.

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