Crypto Chat, News Nigeria's First Compliant Stablecoin: cNGN

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Nigeria's First Compliant Stablecoin: cNGN

A coalition of software firms has launched Nigeria's first compliant stablecoin, cNGN, now part of the Nigerian Securities and Exchange Commission's incubation program. This stablecoin is operational on two licensed digital asset exchanges in the country.

🗣 Adedeji Owonibi, the project's director, stated that it took three years to reach this milestone. He noted that cNGN is active on major blockchain protocols such as Assetchain, Bantu, Base, BNB, Ethereum, and Polygon. The issuer claims that the stablecoin aims to enhance capital market and financial operations in the digital era.

♾ The initiative behind cNGN comes from Alphageek, Convexity, Interstellar, and the Digital Currency Coalition. They believe that this launch will bring regulatory compliance and stability to Nigeria's digital economy. This approval from the Nigerian securities regulator follows a recent commitment to expedite the licensing of digital asset entities.

However, critics argue that cNGN, being pegged to the depreciating naira, may struggle to gain popularity as many Nigerian digital asset users prefer Tether's USDT backed by the stable U.S. dollar.

Despite this, some industry observers view cNGN as a potential facilitator for faster cross-border payments. Senator Ihenyen, lead partner at Infusion Lawyers, expressed optimism:
An NGN-backed stablecoin provides a fresh opportunity for operators and users to access a stablecoin that enables them to make cross-border payments faster, cheaper and more secure.

The cNGN team announced plans for a rollout across partner exchanges and financial institutions starting in February.