Nigeria is preparing to launch cNGN, its first fully compliant stablecoin, licensed by both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
Thank you for reading this post, don't forget to subscribe!are digital currencies designed to maintain a stable value, making them ideal for payments, remittances, and trading, unlike more volatile cryptocurrencies like Bitcoin. By offering stability, cNGN ensures faster and cost-effective transactions powered by blockchain technology.
Adedeji Owonibi, founder of Convexity and Director at cNGN, confirmed that the stablecoin is currently undergoing the SEC’s regulatory incubation process for full government approval. cNGN is already available on licensed Nigerian digital asset exchanges such as Busha and Quidax.
The introduction of cNGN aims to provide greater regulatory clarity and boost financial stability within Nigeria’s growing digital economy. Its rollout, scheduled for February, will see the stablecoin expand to partner exchanges and financial institutions, giving both businesses and individuals a secure and efficient tool for digital transactions.
While Nigeria remains a leader in cryptocurrency adoption, particularly stablecoins like USDT, the naira’s depreciation against the dollar has fueled this trend. cNGN, unlike the government-issued eNaira, follows a decentralized financial model, operating as a privately managed stablecoin while complying with regulatory standards.
Nigeria’s approach to digital assets has evolved significantly. The CBN had previously banned cryptocurrency transactions through banks in 2021 due to concerns about fraud and instability. However, the ban was lifted in December 2023, allowing licensed digital asset firms to provide services through banks, signaling a shift toward more progressive regulation. The SEC’s incubation program is now overseeing the regulatory compliance of digital assets like cNGN.
For Nigerians, cNGN offers an accessible entry point into digital finance, with its value tied to the naira, making it a dependable alternative to volatile cryptocurrencies. It promises smoother remittances, seamless online transactions, and investment opportunities.
Businesses will benefit from faster payment settlements, reduced transaction fees, and enhanced financial inclusion. By addressing inefficiencies in traditional banking, cNGN could help streamline the financial ecosystem.
Chimezie Chuta, founder of the Blockchain Nigeria User Group, highlighted that cNGN represents an opportunity to integrate Nigeria’s currency into decentralized finance. He emphasized that the stablecoin will help onboard the unbanked, further promoting financial inclusion, and will enable businesses to connect with crypto firms supporting cNGN as a currency, instead of relying solely on traditional payment methods.
With SEC approval and CBN authorization, cNGN is set to ease the regulatory burden for users, integrators, and developers, further solidifying its role in Nigeria’s evolving digital finance landscape.
