The Central Bank of Nigeria (CBN) has approved the launch of the Nigerian naira (cNGN) stablecoin.

The payment platform would be launch on February 27, 2024.

The cNGN is powered by the Africa Stablecoin Consortium (ASC), a consortium of Nigerian financial institutions, fintechs, and blockchain experts.

In a statement on its website the ASC described the move as, “a monumental shift in the financial landscape” of Nigeria as the CBN “greenlights the ASC to pilot cNGN (compliant Nigerian Naira StableCoin) in the Central Bank’s Regulatory Sandbox.

“This pivotal approval heralds a new financial chapter, with ASC, an alliance of prominent financial institutions, fintech innovators, and blockchain experts, set to transform the dynamics of monetary transactions. The consortium is committed to enhancing secure and compliant financial interactions, revolutionising the way people transact and engage with their money securely and seamlessly,” it added.

According to the statement, the cNGN “ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology.”

It added: “Backed 1:1 by Naira reserves held in designated commercial banks, cNGN transforms traditional currency into a dynamic tool for worldwide remittances, commerce, trade and investment. More than just a currency, cNGN shortens settlement times, enabling payments that traverse the globe swiftly, mirroring the speed of a text message at a fraction of the cost. This breakthrough paves the way for instantaneous financial transactions, seamlessly connecting Nigeria’s vibrant economy with international markets and offering unprecedented efficiency in both domestic and global financial interactions.”

It urged those anticipating the digital currency to imagine, “your Naira without Borders. Explore the World with cNGN and experience a seamless and cost-effective way to engage with a global marketplace, with the familiarity of your Naira.

“cNGN extends your financial reach far beyond Nigeria’s borders and acts as a global bridge, so you can pay for anything, anywhere, and at any time– all with a seamless tap. Shop the World and pay in Naira without the traditional challenges of currency conversion and hefty international transaction fees.

“Sending money home feels like sending a text message: effortless and instant. No more agonising days waiting for remittances to clear. With cNGN, supporting your loved ones back home becomes as simple as a quick tap on your phone. No more standing in lines. With cNGN, funds land directly in their wallets within seconds, ready to fuel their dreams and brighten their days. No more distance, no more delays, just the magic of compliant virtual assets bridging the gap between hearts.

“Conduct Business without Borders: Trade Like a Pro, Cost-Effectively. Cut out the red tape and sky-high fees of traditional international trade. With cNGN you can send and receive payments across the globe instantly enabling you to transact with national and international partners in any stablecoin currency, fueling economic growth and global success.

“You can unleash your global hustle and get paid, anywhere, instantly. Ditch the limitations of location and outdated payment systems. With cNGN, you can freelance for the world, right from your desk in Nigeria. Your talent knows no borders, so why should your income? Skip the bank queues and paperwork. Receive payments from clients across the globe, directly deposited into your cNGN wallet in minutes. Get paid instantly and securely, without the hassle of currency conversions or hidden fees. Use cNGN to fuel your hustle.” (THISDAY)

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