Leading Nigerian Banks Unite for Innovative cNGN Stablecoin Project
Nigerian banks have teamed up to develop and oversee the cNGN, a fresh stablecoin aimed at benefiting tokenholders and the Nigerian economy. Insider sources, opting to remain anonymous, revealed that the cNGN is backed by and tied to the country’s fiat currency, the Nigerian naira.
Similar to popular stablecoins, the cNGN allows seamless integration across various public blockchains, facilitating global transfers effortlessly and expanding its international utility.
Key collaborators in the cNGN venture include Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity.
Described as a compliant and regulated consortium-backed stablecoin, the cNGN maintains a fixed value to the Naira within a reserve bank account, distinguishing it from the eNaira central bank digital currency. Unlike the eNaira, this new stablecoin operates on public blockchains such as Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. It harnesses cutting-edge blockchain technology and fintech expertise, with major banks serving as licensed custodians.
The cNGN functions as a supplement rather than a replacement for the eNaira. Unlike the eNaira, which is developed by the Central Bank of Nigeria (CBN) with broader functionalities, the cNGN is managed by a consortium comprising Nigerian banks.
Insiders indicated that the CBN permitted Nigerian banks primarily because it aims for the financial system to endorse and enable blockchain technology, bypassing the intricate procedures mandated by the Nigerian Securities and Exchange Commission for providing digital services.
