Skip to main content

Consortium of Nigerian Banks and Fintechs Cleared to Pilot Stablecoin

The Nigerian central bank has given its go-ahead for the Africa Stablecoin Consortium (ASC) to pilot its cNGN stablecoin initiative in the financial regulator’s regulatory sandbox. The ASC asserts that the cNGN stablecoin can prove to be vital not only for the country’s payment rails but for the CBN’s digital currency as well.

ASC’s Stablecoin Set to Go Live in Late February

The Central Bank of Nigeria (CBN) has given the green light for the Nigerian banks, fintech, and blockchain experts consortium, known as the Africa Stablecoin Consortium (ASC), to pilot the cNGN stablecoin initiative in its regulatory sandbox. According to the consortium, the cNGN is scheduled to go live on Feb. 27, 2024.

Described as the compliant Nigerian naira stablecoin, the cNGN, which is backed 1:1 by reserves denominated in local currency, is expected to become the preferred tool for worldwide remittances, trade, and investment, the ASC said. The CBN’s approval reportedly came just as it lifted the Feb. 5, 2021 crypto prohibition order.

The greenlighting of the stablecoin project came at a time when the CBN’s digital currency — the e-naira — continues to stutter despite the central bank’s attempts to shore up the project. The naira depreciation, which has continued even after the currency’s devaluation, has compounded matters.

Complimenting Nigeria’s Payment Rails

However, the ASC asserts that the cNGN stablecoin can prove to be vital not only for the country’s payment rails but for the CBN’s digital currency as well.

“This move complements the enhanced capabilities of the country’s payment rails and paves the way for further advancements in CBDC [central bank digital currency] utilization, regulatory sandbox frameworks, and API [application programming interface] & open banking,” the ASC explained in the statement.

The consortium also claimed that through cNGN stablecoin, Nigerians will be able to perform instantaneous financial transactions. In addition, the stablecoin will seamlessly connect Nigeria’s vibrant economy with international markets, which in turn brings about “unprecedented efficiency in both domestic and global financial interactions.”

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News https://ift.tt/Lxk80W6
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more