Nigeria has introduced its first compliant stablecoin, cNGN, to enhance financial operations and regulatory stability in the digital economy.
A coalition of software companies has introduced Nigeria’s first “compliant” stablecoin, cNGN, now part of the Nigerian Securities and Exchange Commission’s incubation program.
The stablecoin is available on two official digital asset markets in the country and works with different blockchain systems, including Ethereum, BNB, and Polygon.
Project head Adedeji Owonibi said it took three years to start this project, which aims to improve financial operations in Nigeria’s digital economy.
cNGN Stablecoin Aims for Compliance and Faster Cross-Border Transactions
The stablecoin, created by Alphageek, Convexity, Interstellar, and the Digital Currency Coalition, aims to meet regulations and offer security. The Nigerian stocks regulator approved it after recent moves to speed up digital asset licensing.
Critics say that cNGN might have a hard time becoming popular because it’s linked to the naira, which is losing value. Many users prefer USDT because it is backed by the U.S. dollar.
Some people in Nigeria’s digital asset space believe that cNGN can help make cross-border payments faster and cheaper, even though others are doubtful.
Senator Ihenyen, a main partner at Infusion Lawyers, thinks it provides an easy link between regular money and cryptocurrency deals. The cNGN team stated that it will start being available on partner exchanges and financial institutions in February.
