Nigerian Consortium Set to Launch cNGN Stablecoin in 2024

In response to a recent circular from the Central Bank of Nigeria, a collaborative effort involving Nigerian banks, fintech firms, and blockchain enterprises is underway to develop a new Naira stablecoin called cNGN.

Insider sources familiar with the initiative have indicated that the stablecoin is slated for a 2024 debut.

Evolution of Naira Stablecoins

The idea of introducing a Naira stablecoin is not entirely novel, as it has been discussed and explored in various iterations over recent years.

One notable predecessor is NGNT, launched in 2019 by the Token Mint consortium.

This initiative comprised leading Nigerian cryptocurrency exchanges and broader African communities, such as Helicarrier and Busha.

Notably, NGNT is tethered 1:1 with the Naira and operates on both the Binance Smart Chain and Ethereum Network, manifested as BEP-20 and ERC-20 tokens, respectively.

Introducing cNGN: A Consortium-Based Approach

The forthcoming cNGN aims to distinguish itself as a compliant and regulated stablecoin anchored by a consortium of stakeholders.

Unlike its predecessors, cNGN will be backed and held by Nigerian banking institutions, ensuring a 1:1 peg with the NGN.

Contrasting Features: eNaira vs. cNGN

While both eNaira and cNGN are endeavors related to Nigeria's digital currency landscape, they exhibit distinct characteristics.

Notably, cNGN will function as a cryptocurrency, akin to existing stablecoins, rather than a Central Bank Digital Currency (CBDC).

Furthermore, the consortium will oversee and manage cNGN, with member banks holding the stablecoin as part of their reserves.

Abubakar Nur Khalil / Forbes