Nigerian Banks, Fintechs Postpone Launch of cNGN Stablecoin, Give Reasons

• The Central Bank of Nigeria (CBN) has developed a guideline for cryptocurrency trading by Nigerian banks
• The development comes as a consortium of Nigerian banks and fintech firms partner to develop a new stablecoin
• The new stablecoin, cNGN, is backed by the Nigerian currency and designed to benefit token holders.

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The Africa Stablecoin Consortium has announced the postponement of the launch of its cNGN stablecoin.

The new coin was initially slated to be launched on February 27, 2024.

In a statement, the the consortium, consisting of Pan-African banks, fintechs, and blockchain businesses, explained that it is yet to get full regulatory approval.

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cNGN stablecoin launch date

According to the statement, there is a need for regulatory compliance before it is released to the public.

The message reads:

“We are currently engaging with regulatory bodies, including the Central Bank of Nigeria, to participate in its regulatory sandbox program.

“We aim to showcase the potential benefits of the cNGN ecosystem, ensuring a secure, transparent, interoperable, and innovative solution for digital asset transactions in Nigeria.”

The consortium further assured that it will announce the official launch date of cNGN once it has received further guidance and approvals from all regulatory bodies, partners, and stakeholders.

What to know about CNGN

The cNGN will be similar to well-known stablecoins like USDT and USDC and will be compatible with multiple public blockchains, enabling straightforward international transfers and expanding its use globally, Punch reports

The cNGN will also be pegged to the Naira in the Reserve Bank account.

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The difference between eNaira and cNGN is that it is managed by a consortium, not solely by the Central Bank of Nigeria(CBN).

CBN instructs Access, UBA, Zenith, and others on crypto bank accounts, stops cash withdrawals

In another development, Legit.ng reported that the CBN has banned cash withdrawals from virtual and digital asset transactions.

This was disclosed in a new document posted on the CBN website titled 'Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers.'

According to the apex bank, an account opened for virtual assets will only be used for transactions involving virtual/digital assets and not for any other purpose.

Source: Legit.ng