Key Insights
- Leading Nigerian banks collaborate to launch naira stablecoin cNGN
- Maintains peg via fiat currency reserves held in bank custodial accounts
- Brings interoperability with global blockchains for seamless transactions
A group of leading Nigerian banks and fintech firms have teamed up to launch a new regulated stablecoin dubbed cNGN. The aim is to boost financial innovation that benefits consumers, while contributing to economic growth.
cNGN maintains its naira-pegged value using a collateralization model, with reserves of the national currency securely held in custody by participating institutions. Users can have confidence in the 1:1 backing with Nigerian naira.
cNGN Stablecoin Backed by Leading Nigerian Institutions
By harnessing major public blockchains, the cNGN stablecoin is designed for seamless transfers not just domestically but across borders. This attempts to mirror the utility of cryptos like USDT while linking directly to the local fiat currency.
Read also! Nigeria Makes U-Turn by Opening Banks to Cryptocurrencies
Notable consortium members lending their weight include Access Bank, Sterling Bank, Providus Bank, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity.
As a regulated digital token with bank-held reserves, cNGN diverges from the central bank issued eNaira project, instead representing a collaborative effort between Nigerian private companies.