The cNGN token, a new stablecoin, will be created and managed by reputable Nigerian banks with the goal of benefiting both token holders and the Nigerian economy.
It will be developed on an African blockchain, which will be announced once it is fully launched by January 2024.
The cNGN token is fully backed and maintains a one-to-one peg with every Naira (N1) held by these top-tier banks.
Similar to other stablecoins, the cNGN has the ability to work with other public blockchains, allowing for easy global transfers and increasing its usefulness beyond Nigeria.
Key partners in the cNGN project include Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity. This collaboration is significant for the Nigerian financial sector.
cNGN is a compliant and regulated stablecoin that operates as a consortium. It is pegged to the Naira in the Reserve Bank account.
It is important to note that cNGN is different from eNaira CBDC. While eNaira is built on public blockchains such as Bantu, Polygon, Ethereum, Binance Smart Chain, and Tron, cNGN is driven by major blockchain technology companies, fintech firms, and licensed banks that act as custodians for the token.
Despite this new development, the Central Bank of Nigeria (CBN) has emphasized that Nigerian banks and financial institutions are still prohibited from holding, trading, or transacting with crypto assets from their own accounts.
