Nigeria’s Central Bank to Soon Introduce Their Own CBDC
Nigeria's Central Bank has announced plans for the introduction of a new digital currency, the cNGN, slated to launch next month.
This move signifies a significant step towards modernizing transactions and embracing blockchain technology.
Scheduled as part of an experimental initiative within the regulatory sandbox of the Central Bank of Nigeria (CBN), the cNGN will function as a stablecoin pegged to the Nigerian naira.
The Africa Stablecoin Consortium, a collective comprising various Nigerian banks and financial technology companies, has confirmed the adherence of the cNGN stablecoin to the CBN’s regulatory framework. Collaborating closely with regulatory authorities, the consortium is ensuring that the stablecoin is designed with safety, transparency, and compliance at its core.
Unlike the eNaira, an earlier digital currency issued by the CBN, the cNGN will be managed by the Africa Stablecoin Consortium. It is set to operate across multiple blockchain networks, including Bantu and BNB Smart Chain, with plans for further integration into diverse blockchain platforms.
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With its value tracking the Nigerian naira and its backing secured by reserves held in banks, the cNGN aims to establish a link between the Nigerian currency and global digital currencies. This could potentially simplify transactions for Nigerians residing outside the country, easing the process of conducting international financial transactions.
Distinguishing itself from the eNaira, the cNGN, built upon public blockchains, is poised to offer enhanced flexibility, facilitating seamless global fund transfers.
The Nigerian Central Bank’s recent strides towards embracing blockchain and cryptocurrencies have become increasingly evident. In a notable move last December, the bank reversed its ban on Nigerian banks’ involvement with cryptocurrencies, acknowledging the growing global interest and significance of these digital assets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
