Nigeria to develop cryptocurrency, cNGN Stablecoin in 2024 – Report
NIGERIA, Jan. 4 – Nigeria is making preparations to launch its crypto currency which is the first regulated Naira stablecoin called cNGN following the lifting of a two-year ban on cryptocurrency trading through official channels, a report has it.
The report stated trhat the new stablecoin cNGN is being developed by a consortium of Nigerian banks, fintechs, and blockchain businesses and will be consistent with the regulations set by the stakeholders and controlled Naira stablecoin.
Because its stable coin not like other previous draft, the Nigerian Naira would be pegged 1:1 to cNGN, it will be owned by Nigerian banks and will be legal money.
AM Business Ng siad “Nigeria has already attempted to switch to a digital currency on multiple occasions. Nigeria implemented its cashless policy in 2012, with the intention of making its payment system more efficient, lowering the cost of banking services, and improving the effectiveness of monetary policy.”
Forbes claimed that, the debut is scheduled for 2024.
Interestingly, cNGN,will be a cryptocurrency, like other stablecoins, rather than a digital money like the eNaira, which was the case in the previous versions.
This development is coming after the Central Bank of Nigeria lifted the prohibition on cryptocurrency transactions in December last year.
The consortium will service the coin and it will be owned by its banks.
Biztv24 recalled that in February 2021, the central bank of Nigeria (CBN),under the leadership of the sacked CBN governor, Mr Godwin Emefiele, banned credit institutions from doing cryptocurrency-related activities. Which had consequences on many bitcoin firms, forcing them to revise their product offers.
The PUNCH reports that “The lifting of the restriction stems from the realization that cryptocurrencies play a significant role in global financial systems, and its use in Nigeria, which is one of the currency’s fastest users, is unavoidable.”
