After seeing how valuable and beneficial cryptocurrency has become for financial transaction, Nigeria has adopted and is developing her own stablecoin.
This is coming after Nigeria lifted its almost three-year ban on cryptocurrency trading.
The stablecoin is called cNGN and it is being developed by a consortium of Nigerian banks, fintechs, and blockchain businesses.
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It is expected that the coin would be consistent with the regulations set by the stakeholders and controlled Naira stablecoin.
The stablecoin will be owned by Nigerian banks and pegged against the Naira on a 1:1 to cNGN.
According to Forbes, the debut is scheduled for 2024.
However, the cNGN will be a cryptocurrency like other stablecoins rather than a digital money, as in prior versions.
This comes after the Central Bank of Nigeria lifted the prohibition on cryptocurrency transactions last week.
The coin will be serviced by the consortium and owned by its banks.
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Basically, the lifting of the restriction stems from the realisation that cryptocurrencies play a significant role in global financial systems.
The belief is that Nigeria is only being smart to switch to cryptocurrency for its huge benefit as a legal means of financial transaction.
