Nigeria’s first regulated stablecoin, the cNGN, will not be launching in February, the industry association behind its development has clarified.
As CoinGeek reported, the African Stablecoin Consortium (ASC) is set to launch the new stablecoin. ASC comprises Nigerian commercial banks and fintechs and aims to launch the first fully regulated and multi-network stablecoin in the West African country to compete with the eNaira, Nigeria’s attempt at a digital naira.
In a press statement, the ASC clarified that the cNGN won’t be launching next month, as reported over the last week by Nigerian media outlets. The stablecoin is still under development, and the association has yet to secure the required authorizations from regulators, it revealed.
“The Africa Stablecoin Consortium wishes to clarify that cNGN will not be publicly launched on the 27th of February, 2024. Instead, we are engaging with the appropriate regulatory bodies, including the Central Bank of Nigeria, to participate in its regulatory sandbox program.”
ASC pledged to work with the Central Bank of Nigeria (CBN) and other authorities and said it would not “proceed with the public launch of cNGN until we have obtained all the necessary approvals and guidance.”
The cNGN will be issued on public blockchains and will be available to list on digital asset exchanges and other local and regional financial services. It will be backed by naira deposits held at specified local banks.
Experts believe that the new stablecoin could be more impactful than the eNaira. Africa Finance Corporation’s Afolabi Oriyomi thinks it will boost financial inclusion and open the country to international funds transfers. However, its success will rely on the regulatory framework that CBN and other watchdogs adopt, he told one outlet.
CBN has been on a digital asset crackdown for years and only recently gave the nod to local banks to serve VASPs, paving the way for projects like cNGN to integrate with the financial system.
Local analyst Rume Ophi concurs, adding that the success of the new stablecoin will also rely on the consortium’s success in creating awareness and publicity for the project.
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