A coalition of software firms has launched cNGN, Nigeria’s first “compliant” stablecoin, now included in the Nigerian Securities and Exchange Commission’s (SEC) incubation program.
It is reportedly live on two licensed digital asset exchanges.
Why it matters
The stablecoin aims to bring regulatory compliance and stability to Nigeria’s digital economy, a space that has long operated in regulatory uncertainty.
The big picture
- The stablecoin, backed by the naira, was developed by Alphageek, Convexity, Interstellar, and the Digital Currency Coalition.
- It is live on multiple blockchain protocols, including Assetchain, Bantu, Base, BNB, Ethereum, and Polygon.
- The Nigerian SEC’s approval follows a recent push to accelerate digital asset licensing.
Yes, but: Critics argue cNGN will struggle to gain traction since it is pegged to the naira, which has been depreciating. Many Nigerian crypto users prefer USDT, which is backed by the U.S. dollar.
What they’re saying
- Adedeji Owonibi, the stablecoin project director, said his team worked for three years to achieve this milestone.
- Senator Ihenyen, lead partner at Infusion Lawyers, sees cNGN as a game-changer: “An NGN-backed stablecoin provides a fresh opportunity for operators and users to make cross-border payments faster, cheaper, and more securely.”
What’s next
The cNGN team plans to roll out the stablecoin across partner exchanges and financial institutions starting in February.
Source: Bitcoin News
