© Reuters.
ABUJA – The Central Bank of Nigeria (CBN) has officially approved the inclusion of the cNGN stablecoin in its regulatory sandbox, setting the stage for a February launch. The cNGN stablecoin, which is backed by Nigeria’s naira reserves, is designed to adhere to standards set by the CBN, the Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU).
The move comes as Nigeria continues to integrate blockchain technology into its financial system. The cNGN stablecoin, not to be confused with eNaira, is intended to operate on several blockchain platforms, including Bantu, BNB Smart Chain, Polygon, and Tron. The introduction of cNGN aims to improve the process of remittances, leveraging the efficiency and affordability of blockchain technology, while ensuring that consumer protection is a top priority.
The approval of the cNGN stablecoin is a significant milestone that follows a December banking circular that viewed cryptocurrencies in a positive light. This change in the financial landscape reflects the high rate of adoption of cryptocurrencies in Nigeria, which has been driven by the depreciation of the naira and the country’s recognition of the growing global demand for digital currencies.
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