Nigerian cryptocurrency industry stakeholders are discussing the potential adoption of the cNGN stablecoin, recently approved by the Central Bank of Nigeria (CBN). The Africa Stablecoin Consortium (ASC), composed of Nigerian banks and fintechs, introduced the cNGN stablecoin to bring advantages to tokenholders and the Nigerian economy. Crypto analyst Rume Ophi believes that the success of cNGN will depend on publicity efforts and educational outreach by the consortium to the crypto community. While ASC claims that cNGN will complement the eNaira central bank digital currency (CBDC), Finna Protocol suggests in a post that it is unlikely for a stablecoin on a public blockchain to complement another on a private blockchain. The inclusion of "heavyweights" in the cNGN consortium indicates potential widespread business support once the stablecoin goes live. There are discussions about the nationwide adoption of cNGN, leading to increased adoption of Web3 technologies in Nigeria. The regulatory sandbox for the cNGN stablecoin will be piloted by the ASC, with the launch scheduled for February 27, 2024.


Key Points:

  • cNGN Stablecoin Approval: The Central Bank of Nigeria (CBN) approved the cNGN stablecoin introduced by the Africa Stablecoin Consortium (ASC), consisting of Nigerian banks and fintechs.

  • Potential Adoption Rate: Nigerian crypto analyst Rume Ophi believes that the crypto community in Nigeria will likely appreciate the new cNGN stablecoin. The success of cNGN depends on promotional efforts and educating the community about its features.

  • Public vs. Private Blockchain: The Finna Protocol suggests in a post that it is unlikely for a stablecoin on a public blockchain (cNGN) to complement another stablecoin on a private blockchain (eNaira).

  • Business Support: The inclusion of "heavyweights" in the cNGN consortium signals potential widespread business support for the stablecoin once it is launched.

  • Web3 Adoption: There are discussions about nationwide adoption of cNGN, leading to increased adoption of Web3 technologies in Nigeria.

  • eNaira Perception: Nigeria's Central Bank Digital Currency (CBDC), eNaira, has not seen significant adoption, with some attributing it to the perception that it opposes the crypto industry in the country.

  • Regulatory Sandbox: The CBN approved the ASC to pilot the cNGN stablecoin in its regulatory sandbox on January 4, 2024. The consortium plans to launch the stablecoin on February 27, 2024.

Conclusion: Nigerian cryptocurrency stakeholders are discussing the potential adoption of the cNGN stablecoin approved by the Central Bank of Nigeria (CBN). The Africa Stablecoin Consortium (ASC) aims to bring advantages to tokenholders and the Nigerian economy through the new stablecoin. While there are discussions about cNGN complementing the eNaira CBDC, the Finna Protocol suggests it is unlikely due to the difference in blockchain types. The success of cNGN is expected to depend on promotional efforts and educational outreach to the crypto community. The regulatory sandbox for cNGN is set to be piloted by ASC, with the official launch scheduled for February 27, 2024.


(AMAKA NWAOKOCHA, COINTELEGRAPH, 2023)