Major Nigerian Banks Collaborate to Launch and Manage cNGN Stablecoin, Aim to Bolster Economy and Facilitate Global Transfers
Summary:
Major Nigerian banks are collaborating to create the cNGN stablecoin, a new digital currency designed to benefit token holders and the Nigerian economy. Backed one-to-one by Naira held by these banks, the token offers interoperability with many public blockchains for easy global transfers. Key contributors to this project include Access Bank, Sterling Bank, and others. The cNGN is a complement to the eNaira and is managed by a consortium of Nigerian banks, blockchain tech companies, and fintech. The Central Bank of Nigeria supports this initiative to embrace and facilitate blockchain technology within the financial system.
Major banks in Nigeria are joining forces to establish and manage the cNGN stablecoin, a new digital currency that's set to benefit both its holders and the Nigerian economy. Inside sources, choosing to remain nameless, have disclosed that each cNGN token is fully backed, establishing a one-to-one relationship with every Naira (N1) possessed by these prominent banks. Like other well-known stablecoins, cNGN is interoperable with many public blockchains, making global transfers straightforward and expanding its international usage. Key players in the formation and execution of cNGN include Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity, signifying a notable collaboration in Nigeria’s financial sector. “cNGN is a stablecoin backed by a well-regulated consortium that we’ve been endorsing. It's linked to the Naira with a reserve bank account,” said the source. Unlike the Central Bank Digital Currency (CBDC) eNaira, the token has been constructed on public blockchains (Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron). It's under the guidance of powerful blockchain tech organizations, fintech, and leading banks playing the role of certified custodians for the token. Related: The Central Bank of Nigeria eases its policies for banks dealing with crypto transactions. cNGN is intended to complement, not replace, the eNaira. The cNGN is regulated by a consortium that includes Nigerian banks, unlike the eNaira, the brainchild of the Central Bank of Nigeria with wider functions. Sources revealed that the Central Bank of Nigeria granted permission to Nigerian banks due to their desire to see the financial system embrace and facilitate blockchain technology, and to circumnavigate the complex structure set up by the Nigerian SEC to operate a digital service. More details on this evolving situation will be released as it develops. Magazine: The Hong Kong game company procures $100M crypto for the treasury, Central Banks of China/UAE ink CBDC deal: Asia Express.
Published At
12/23/2023 10:17:50 AM
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