A crypto startup based in Nigeria recently listed cNGN, the country’s first regulated stablecoin tied to the naira. This move reflects the evolving stance on crypto regulation in Nigeria, highlighting a balance between oversight and the increasing use of digital currencies.
The listing on March 12 by Quidax allows users to transact cNGN between wallets for various purposes like payments, transfers, and exchanges. The oversight by Nigeria’s Securities and Exchange Commission (SEC) on cNGN’s introduction suggests a focus on integrating cryptocurrencies into the financial system rather than imposing restrictions.
The cNGN stablecoin was launched in February 2024 by the African Stablecoin Consortium (ASC) after three years of development. The consortium, comprising various tech companies, applied for approval under the Regulatory Incubation (RI) program and received provisional licensing in August 2024.
With a gradual increase in adoption since its launch, cNGN has garnered interest, now with a wider reach through multiple platforms. Exchanges looking to list cNGN are vetted to ensure stability in supply management, with a verification fee in place to cover service costs.
While some in the crypto community question the necessity of cNGN when fiat naira is already prevalent on major platforms, there is potential for the stablecoin to facilitate trading on decentralized platforms that have delisted naira. The ASC aims to expand cNGN’s presence on more exchanges to establish it as a viable remittance tool, emphasizing the importance of user adoption to solidify its position in the market.