The news:
- The launch of cNGN, Nigeria’s official stablecoin, previously scheduled for Tuesday, February 27, 2024, has been postponed to comply with regulations.
- The African Stablecoin Consortium (ASC), the entity handling the cNGN project, said it is working with relevant regulatory bodies, including the Central Bank of Nigeria, to join its regulatory sandbox programme.
- On Thursday, January 4, 2024, the Consortium, which comprises pan-African banks, fintechs, and blockchain technology companies, first announced the now-postponed launch date of the stablecoin.
The ASC apologised for any confusion caused by the postponement of the launch date and stated that the stablecoin needed to comply with regulations.
The consortium said it’s fully committed to adhering to all guidelines and regulations stipulated by the authorities. They promise to announce a new launch date for cNGN once it has obtained all the necessary guidance and approvals from all regulatory bodies, partners, and stakeholders.
“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 ASC assured.
In 2021, the launch date of Central Bank Digital Currency (CBDC) — the eNaira — was also moved from its original date of October 1, 2021, due to the unanticipated surge in visits to its website. The postponement also made room for other Independence Day activities. Naira eventually launched on Monday, October 25, 2021.
With the cNGN towing the same inconsistent line as the eNaira, questions are arising about the future of the stablecoin and whether it will succeed where the eNaira failed.
The Nigerian stablecoin is compliant and regulated, pegged to the Naira (1:1) in the Reserve Bank account. It will be compatible with public blockchains, similar to well-known stablecoins such as USDC and USDT, allowing Nigerians to make global payments.
While the Central Bank of Nigeria solely controls the eNaira, the consortium will manage the cNGN.
