The Central Bank of Nigeria has given the greenlight to the cNGN stablecoin to launch in February

Recently Central Bank of Nigeria gave greenlight to cNGN stablecoin. This new stablecoin is expected to be launched next month, at the end of February That is why the Central Bank of Nigeria (CBN) is working. The country's central bank has moved to pilot the cNGN stablecoin in its regulatory sandbox to launch the new stablecoin. Basically they have authorized the Africa Stablecoin Consortium (ASC) to approve this new coin.

ASC – A cooperative association of Nigerian banks and fintech operators. This new stablecoin is regulated by the CBN, the Nigerian Securities and Exchange Commission and the Nigerian Financial Intelligence Unit. Also this new stablecoin complies with the regulatory requirements and standards of Intelligence Units The group said it is engaging with regulators to ensure compliance, consumer protection and transparency.

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cNGN will not act as a substitute for eNaira but as a complement to it. It is a digital currency (CBDC) issued by the Nigerian Central Bank. This new stablecoin is currently interoperable with strategic blockchains such as Bantu and BNB Smart Chain. Although it is planned to expand in a limited way, it is expected that compatibility will soon be extended to all major blockchain networks in the future, and there are various plans for this by the central bank or organizations of the country.

This new stablecoin is pegged 1:1 to the Nigerian Naira. The country is backed by fiat currency as a reserve, and the naira held in designated commercial banks. Hence the circulation plan of this new stablecoin by the country. In particular, they believe or hope that this new stablecoin will bridge the gap between the naira and digital currencies in the global market through blockchain technology. And this is their main goal.

This new stablecoin is planned by the government of the country so that Nigerian remittance warriors can send money to their families very easily and quickly. If implemented, remittance warriors will be able to complete transactions to their families with low fees and speed, eliminating the expensive fees associated with traditional international transactions.