Major Nigerian banks have joined forces to develop and manage the cNGN stablecoin, a new digital currency aimed at benefiting token holders and the Nigerian economy. This initiative represents a significant collaboration in the Nigerian financial sector.
The cNGN, fully backed and pegged directly to the Nigerian Naira (N1), is being developed by a consortium of key banks. It offers interoperability across various public blockchains, enabling easy global transfers and expanding its international usability.
Key Participants in the cNGN Project
Leading institutions involved in the cNGN project include Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity. These banks and technology companies form a robust alliance, enhancing the credibility and reach of the cNGN.
Unlike the eNaira, which is a central bank digital currency (CBDC) created by the Central Bank of Nigeria (CBN) with more extensive functionalities, the cNGN is a consortium-backed stablecoin, adhering to compliance and regulatory standards. It is designed to maintain a stable value, pegged to the Naira, and held in reserve bank accounts.
The cNGN token is being built on public blockchains, including Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. It leverages advanced blockchain technology, with significant banks acting as licensed custodians and fintech companies contributing their expertise to the project. This collaborative effort aims to establish cNGN as a reliable and regulated digital currency within Nigeria’s financial landscape.