Africa Consortium to launch cNGN stablecoin by February 27

The Africa Stablecoin Consortium, a group of fintech, blockchain, and Nigerian financial organizations, plans to introduce a compliant Nigeria Naira stablecoin on February 27, 2024.

The consortium in a statement issued on Friday said the launch of the cNGN is hinged on the new Regulatory Sandbox released by the Central Bank of Nigeria.

According to the consortium, the cNGN stablecoin would revolutionise financial transactions. Through the project, the consortium said it is committed to enhancing secure and compliant financial interactions, revolutionising the way people transact and engage with their money securely and seamlessly.

While noting that the stablecoin will transform the Nigerian Naira into a currency for global settlements, the ASC said, “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.”

“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,” it added.

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.