A group of top Nigerian banks is working together to launch the cNGN stablecoin, a new digital currency that will help the country’s economy and make transactions more efficient. This is a big deal for the country’s financial industry.
This project is an important step toward incorporating blockchain technology into Nigeria’s banking system.
Unlike the eNaira, which was created by the Central Bank of Nigeria (CBN), the cNGN stablecoin is not meant to replace the current digital currency. Instead, it is meant to work with it. The eNaira can do more things and is directly controlled by the Central Bank of Nigeria (CBN). The cNGN, on the other hand, is run by a group of important Nigerian banks working together. This is an example of how the country’s banks can work together.
Anonymous sources close to the project say that the cNGN token is fully backed, which means that it has the same value as the Nigerian Naira (N1) that these banks hold in reserve. This support makes sure that the cNGN will be stable and reliable as a digital currency.
The fact that the cNGN stablecoin can work with different public blockchains is one of its best features. This feature makes it easy to send money around the world, making the cNGN useful outside of Nigeria and making foreign transactions easier.
Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity are just a few of the well-known banks and tech companies that are leading this effort. This partnership shows that everyone is working together to improve digital currency options in Nigeria’s banking industry.
The cNGN is also built on different technology than the eNaira. The cNGN is based on public blockchains like Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron, while the eNaira is a central bank digital currency (CBDC). It uses the knowledge of the best blockchain tech companies, fintech companies, and big banks, which are allowed to keep the token safe.
The Central Bank of Nigeria wants to use blockchain technology in the banking system, and this project fits in with that plan. The Central Bank of Nigeria (CBN) sees the promise in blockchain and has eased the rules for banks that do crypto transactions. This is because the CBN knows that the steps set out by the Nigerian Securities and Exchange Commission for digital services are complicated.
As this story develops, more information is likely to come out that will shed light on the cNGN stablecoin’s possible effects and future uses in Nigeria’s banking system.
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