CBN approves naira stablecoin, to launch
The Central Bank of Nigeria (CBN) has given the Africa Stablecoin Consortium (ASC) permission to launch cNGN, a stablecoin backed by the naira. The cNGN, which is scheduled for introduction on February 27, 2024, is being led by the ASC, a cooperative initiative that includes fintech, blockchain specialists, and Nigerian financial institutions.
The Central Bank of Nigeria’s noteworthy approval highlights the Africa Stablecoin Consortium’s (ASC) cooperative efforts in launching the cNGN stablecoin. This project, which is slated to begin on February 27, 2024, is an amalgam of knowledge from fintech firms, blockchain experts, and financial institutions in Nigeria. The planned launch of the cNGN stablecoin demonstrates the ASC’s dedication to creating a secure and stable digital financial environment.
Stablecoins are a class of cryptocurrencies that are frequently linked to another money, commodity, or financial instrument. Their purpose is to maintain a constant value.
The Africa Stablecoin Consortium (ASC) recently declared on its website that the Nigerian Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria (CBN) have all successfully met the regulatory standards and requirements for its cNGN stablecoin.
The ASC highlights that it is committed to improving safe and legal financial transactions and sees a revolutionary change in the way people interact with money securely and easily. The consortium believes that the introduction of the cNGN stablecoin marks the start of a new phase in financial flexibility, enabling the Nigerian Naira to be more easily connected to the international market through cutting-edge blockchain technology.
An important turning point for the Africa Stablecoin Consortium (ASC) has been reached with the regulatory support of the Central Bank of Nigeria, the Nigerian Securities and Exchange Commission, and the Nigerian Financial Intelligence Unit. The ASC emphasizes its dedication to transforming financial relationships as the cNGN stablecoin complies with accepted criteria.
The ASC sees the cNGN stablecoin as a game-changer that will enable easy interaction with money by offering a safe and legal foundation for financial transactions. The consortium views this launch as a game-changer, bringing in a new era of financial transparency by connecting the Nigerian Naira to the international market through blockchain technology.
The cNGN stablecoin is essentially a strategic convergence of technology innovation and regulatory compliance, positioning it sees itself as a major force in changing the dynamics of financial transactions in both the Nigerian and international arenas.
The cNGN Stablecoin enables the Naira to act as a dynamic tool for international remittances, trade, commerce, and investment. It is backed 1:1 by Naira reserves kept in approved commercial institutions.
The cNGN lowers settlement times more than traditional currencies, enabling quick international payments at a fraction of the cost and similar to the speed of a text message.
This innovative breakthrough creates smooth links between Nigeria’s strong economy and global markets by enabling fast financial transactions. It transforms financial transactions domestically and internationally with previously unheard-of efficiency, opening up new avenues for the Naira Stablecoin.
The Naira is entering a new era of possibilities thanks to this revolutionary strategy of supporting the cNGN Stablecoin 1:1 with Naira reserves in approved commercial institutions. It progresses from being a conventional currency to a dynamic instrument for international trade, investment, commerce, and remittances.
Fast and affordable international payments are made possible by the cNGN’s significant reduction in settlement times. Its effectiveness is comparable to the speed of a text message, which represents a revolution in the way that financial transactions are conducted.
This innovation presents the Naira Stablecoin as a catalyst for quick financial interactions and fits perfectly with the fast-paced modern digital world. Nigeria’s dynamic economy is connected to worldwide markets with such ease that it provides unmatched efficiency in both local and global markets. financial environments, paving the way for a revolutionary change in the Naira Stablecoin’s potential and application.
According to the Africa Stablecoin Consortium (ASC), anyone can now easily pay for anything, anywhere, at any time. Users can shop and pay in naira anywhere in the world with just one smooth tap, doing away with the hassles and costs associated with currency conversion and expensive international transaction fees.
The consortium also highlights how, because of this creative strategy, helping family members back home has become as simple as giving them a quick tap on their phone.
Say goodbye to waiting in lines. By employing cNGN, money is delivered to their wallets instantaneously, sparking dreams and illuminating their days. The Africa Stablecoin Consortium (ASC) emphasizes that delays and physical boundaries no longer exist; instead, compliant virtual assets magically close the distance between people’s hearts.
Get rid of the costly fees and bureaucracy that come with traditional international trade. You may send and receive money immediately anywhere in the world with cNGN. This promotes economic growth and international success by enabling smooth transactions in any stablecoin currency with both domestic and foreign partners.
Get paid right now, no matter where you are. With cNGN, you can overcome the limitations of antiquated payment methods. These days, you can work as a freelancer anywhere in the world from Nigeria at your desk. Your income with cNGN will transcend geographical boundaries, just as your talent does. Avoid long lines at banks and paperwork headaches.
A major change has occurred with the introduction of cNGN, which came more than two years after the central bank prohibited the use of digital currencies. The Central Bank of Nigeria ordered financial institutions to terminate accounts linked to people or organizations using their systems to transact in cryptocurrencies in February 2021.
Reiterating its warning to regional financial institutions, the regulatory body discourages them from engaging in cryptocurrency assets or processing payments for cryptocurrency exchanges. Concerns about cybercrime, money laundering (ML), terrorism funding (TF), and the inherent volatility of cryptocurrencies were used to support the prohibition.
However, on December 22, 2023, the top bank hinted at a shift in position by releasing new operating guidelines for virtual assets service providers (VASPs) that were intended for all banks and other financial institutions (OFIs). This change in strategy recognizes VASPs as organizations involved in the transfer of virtual assets as well as the exchange of virtual assets (cryptocurrencies) for fiat currency.
