Nigeria’s Central Bank Approves Launch Of CNGN Stablecoin Amid CBDC Concerns
By: Jared Kirui
The Central Bank of Nigeria (CBN) has granted approval to the Africa Stablecoin Consortium to introduce compliant Nigerian Naira stablecoins (cNGN) into its regulatory sandbox.
This is a crucial time in Nigerian finance. Fintech is an important part of the ASC, which includes leading financial institutions. Innovators and blockchain experts in the country are focusing on monetary transactions.
The system is scheduled to be operational by February 27, 2024. The cNGN is backed by Naira reserves held at a designated commercial bank. The Naira is expected to be a currency that can be used to conduct cross-border transactions quickly and efficiently. In its official statement, the ASC referred to global issues.
ASC Stablecoin and Financial Security
According to ASC, cNGN is intended to complement Nigerian capabilities. Payment platforms pave the way for improvements in the use of central bank digital currency (CBDC), the regulatory framework and open banking.
Learn more about ASC stablecoin by clicking here. The goal is to build a future-proof financial system that uses technology to streamline transactions and improve security. The ASC envisions an era in which cryptocurrency will be the norm. Complement traditional finance by creating a robust and inclusive future-proof system finance landscape.
Nigeria’s efforts to promote widespread adoption of the eNaira CBDC have faced ongoing criticism despite initial progress. Last year the country announced initial progress. Plans to change eNaira’s model to encourage greater usage AskFX reported.
Despite a significant increase in eNaira wallet registrations, 13 million will be reached by March 2021 from the launch of the service in October 2021. This number is modest given the size of the country. Population of more than 200 million.
Overcoming hurdles in eNaira adoption
Adoption remains a challenge for many Nigerians. eNaira is a currency that can be used by anyone. Although the central bank reported transactions totaling 22 billion naira ($48 million at the time) in March last year, the country’s informal economy, which relies largely on cash, has been a major problem for many years. Obstacles.
Nigeria has historically taken a dynamic regulatory approach to cryptocurrencies. The Securities and Exchange Commission of Nigeria (SEC) reiterated its warning to Binance last year for describing its Nigerian operations as “illegal.”
Binance has been criticized by the regulator. The Commission does not register or regulate operations in Nigeria. They are illegal. This warning has been extended to all crypto platforms in Nigeria and they have been asked to immediately stop advertising to Nigerian investors.
The SEC warned the public to avoid doing business with unregistered companies. Cryptography: highlighting the inherent risk of investments that could result in loss of investment
