Nigeria Set to Introduce Its Inaugural Regulated Stablecoin

A brand-new Naira stablecoin dubbed cNGN is set to be introduced by Nigeria. It will be governed and compliant. Since it would be held by Nigerian banks and be legal money, cNGN will vary from previous stablecoin proposals in that it will have a 1:1 parity with NGN.

Reliable sources at Forbes state that the launch is scheduled for 2024.

Instead than being a digital currency issued by a central bank (CBDC), cNGN will function as a cryptocurrency similar to other stablecoins. In addition, the group of banks that will possess the coin will manage it.

“However, there are still many questions about the cNGN that the consortium will have to answer, such as the blockchain platform it will use and the planned apps and services for users.”

Forbes

Nigeria has approved the use of cryptocurrencies, which led to the creation of this scheme. Prior to that, financial institutions were prohibited from dealing with cryptocurrencies by the Central Bank of the nation in February 2021. The usage of cryptocurrencies in Nigeria is inevitable and their significance to the global financial system led to the lifting of the prohibition.

Before, Nigeria attempted to use a digital money. Based on the notion that doing away with cash will improve the efficiency of the country’s payment system, reduce the cost of banking services, and strengthen the impact of monetary policy, Nigeria instituted a cashless policy in 2012.

However, since its inception on October 25, 2021, eNaira, a CBDC that was the forerunner of cNGN, has not seen much use. Despite the fact that around 40 million individuals in the nation require bank accounts, the central bank has not been able to convince them to utilize CBDC. Out of 200 people, just one has utilized digital currency.