In response to a circular from the Central Bank of Nigeria, a consortium comprising Nigerian banks, fintechs, and blockchain firms is actively working on the development of a Naira stablecoin known as cNGN.
Sources closely associated with the project indicate a scheduled launch in 2024.
The idea of a Naira stablecoin has been circulating for several years, marked by previous attempts, including the 2019 initiative NGNT by the Token Mint consortium. This consortium, consisting of major Nigerian crypto exchanges and African communities like Helicarrier and Busha, introduced NGNT, pegged 1:1 with the Naira, available as BEP-20 and ERC-20 tokens on the Binance Smart Chain and Ethereum Network, respectively.
The proposed cNGN seeks to be a compliant and regulated consortium-based Naira stablecoin, maintaining a 1:1 peg with NGN. Notably, unlike past attempts, cNGN will be held by Nigerian banks.
Major players in the consortium include prominent Nigerian tier-1 banks such as First Bank, Access Bank, Sterling Bank, and Providus Bank. Additionally, payments companies like Budpay, Kora (formerly KoraPay), and Interswitch, along with blockchain consultants Convexity and Interstellar, are key partners. The cNGN stablecoin aims to streamline international transfers of NGN.
However, certain aspects of the cNGN remain unclear and will require clarification by the consortium. These include the chosen blockchain and details regarding planned consumer applications and services.
