The cNGN is supervised by a group of Nigerian banks and functions as an addition to the eNaira, not as a replacement for it. Nigerian banks are working together to design and manage the cNGN, a new stablecoin that is intended to benefit token holders as well as the Nigerian economy.
The project’s anonymous insiders claim that the cNGN token is correlated with and backed by the fiat currency of Nigeria, the naira.
Much like well-known stablecoins, the cNGN has compatibility with a number of public blockchains, making international use easier and facilitating seamless international transfers.
Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity are among the partners in the cNGN initiative.
“cNGN is a compliant and regulated consortium-backed stablecoin that we have been advocating. It maintains a peg to the Naira in a reserve bank account.”
The new stablecoin is created on public blockchains (Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron), in contrast to the central bank’s eNaira digital currency. Leading fintech and blockchain companies are driving it, and big banks are serving as authorised custodians.
The eNaira is supplemented by the cNGN, not replaced by it. In contrast to the eNaira, which was developed by the Central Bank of Nigeria (CBN) and has more features, the cNGN is managed by a group of Nigerian banks.
The sources claim that the CBN permitted Nigerian banks mainly because it wants the financial system to support and enable blockchain technology, in spite of the onerous procedure that the Nigerian Securities and Exchange Commission requires in order to provide digital services.