ASC’s Stablecoin Scheduled for Late February Launch
The Central Bank of Nigeria (CBN) has approved the Africa Stablecoin Consortium (ASC) to pilot its cNGN stablecoin initiative in its regulatory sandbox. The ASC plans to launch the stablecoin on February 27, 2024. The cNGN, which is backed 1:1 by reserves denominated in local currency, aims to become a preferred tool for remittances, trade, and investment. The approval comes as the CBN recently lifted its crypto prohibition order.
Benefits for Nigeria’s Payment Rails and Digital Currency
The ASC believes that the cNGN stablecoin can be beneficial not just for Nigeria’s payment rails, but also for the CBN’s digital currency. The consortium stated that the stablecoin will complement the country’s payment rails and enable advancements in central bank digital currency utilization, regulatory sandbox frameworks, and API and open banking. The cNGN stablecoin will facilitate instantaneous financial transactions for Nigerians and create seamless connectivity between Nigeria’s economy and global markets, resulting in greater efficiency in both domestic and international financial interactions.
Hot Take: cNGN Stablecoin Nearing Launch in Nigeria
The Nigeria Stablecoin Consortium (ASC) has received approval from the Central Bank of Nigeria (CBN) to pilot its cNGN stablecoin initiative in the regulatory sandbox. Set to go live in late February, the cNGN stablecoin aims to become a preferred tool for remittances, trade, and investment. The ASC believes that the stablecoin will not only benefit Nigeria’s payment rails but also contribute to the success of the CBN’s digital currency. By enabling instantaneous transactions and connecting Nigeria’s economy with global markets, the cNGN stablecoin could revolutionize financial interactions in the country and beyond.
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