According to the Africa Stablecoin Consortium, the cNGN stablecoin follows all rules and regulations set down by the Nigerian SEC and the Central Bank of Nigeria.
The cNGN stablecoin will be tested in the regulatory sandbox of the Africa Stablecoin Consortium (ASC) by the Central Bank of Nigeria (CBN). February 27, 2024, is the scheduled launch date of the next stablecoin.
The cNGN stablecoin is in full compliance with all regulations and standards imposed by the CBN, the Nigerian Securities and Exchange Commission, and the Nigerian Financial Intelligence Unit, according to a blog post by the ASC. The organization has stated its intention to work with relevant authorities to promote openness, consumer safety, and compliance.
While the eNaira is the central bank digital currency (CBDC) issued by the Central Bank of Nigeria (CBN), the cNGN is meant to supplement it rather than replace it. The ASC is in charge of the cNGN, in contrast to the CBN’s eNaira, which has more capabilities. There are plans to expand compatibility to all major blockchain networks shortly, but for now, the stablecoin may be used with strategic blockchains such as Bantu and BNB Smart Chain.
According to the blog post, the Nigerian naira, the nation’s fiat currency, serves as the cNGN token’s support. The stablecoin is an attempt to use blockchain technology to level the playing field between the naira and other digital currencies on the international market.
The purpose of the cNGN is to facilitate the instant transfer of funds from overseas Nigerians to their loved ones back home. The high costs of conventional international transactions are another target.
This blog post asserts that the CBN is pushing for the banking system to support and enable blockchain technology. Nigerian banks are now free to process cryptocurrency transactions according to a circular handed out by the Central Bank of Nigeria (CBN) on December 22, 2023. This move comes as a response to the growing demand and acceptance of cryptocurrencies throughout the world.
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