NigeriaThe first local Stablecoin, CNGN, was officially launched on local exchanges just one month after the country’s central bank gave it green light.
CNGN, which is touts itself as the first regulated Stablecoin In Africa, there are purchases at the two licensed digital asset exchanges in Nigeria: Quidax and Busha. Licensed individuals and companies can also buy Stablecoin directly from the issuer, according to the company’s Website.
From February 5, CNGN had 4,400 tokens in circulation, with 13 holders and scattered over six blockchain networks, with Bantu Blockchain containing the brother party.
CNGN is developed by Africa Stablecoin ConsortiumAn industry organization whose members include Nigerian banks and fintech. It was first announced In January last year and planned, launched in February. But ASC Posted The launch, which revealed that it had not yet received the licenses required from the Central Bank of Nigeria (CBN).
ASC finally got the license from CBN last month. In its announcement, the organization promised to continue working with the central bank and other watchdogs, including the SEC and the Nigerian financial intelligence unit (FIU), to remain compatible.
CNGN, which stands for “compatible Nigerian Naira”, will be tied 1: 1 to Naira, with any new token that was only coined when a corresponding value in Naira has been deposited in a bank account. ASC has promised to entertain Transparent reserves And to be reviewed quarterly by third -party auditors. It will also publish daily items and monthly certificates on the assets in reserve.
Openness will be crucial to CNGN’s success. Although Stablecoins are a $ 227 billion sector, it is still enveloped in opaque structures, and investors usually have to rely on the issuer’s world. TetherThe market leader of $ 140 billion, is the most notorious and turns its audits to paint a story despite is guilty to incorrectly imagine their reserves by the New York -Riksdoken. Commodity Futures Trading Commission (CFTC) also found that Tether had only full support for USDT for 27% of the time between 2016 and 2019.
CNGN is a landmark step for Nigeria’s digital asset sector, which provides a located solution to the country’s Stablecoin demand. However, concern remains around its Naira support. Naira has been one of Africa’s Most unstable currencies In recent years, drastically dipped from an exchange rate on the N460 against the US dollar in early 2022 to the N1 500 today. Only in 2024, the exchange rate doubled, which was the worst result against Greenback in Africa before Malawis Kwacha.
But for a country with 235 million people who have met Serious cash deficiency In recent years and where 25% of the population remains unannounced, CNGN’s potential market is huge.
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