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STABLECOIN | Nigerian Banks and Fintechs to Trial ‘Compliant’ cNGN Stablecoin in 2024
Following the lifting of the 2021 crypto ban by the Central Bank of Nigeria (CBN), a consortium that includes leading Nigerian banks is set to introduce the cNGN token, a new stablecoin, that aims to provide transparency and regulation compliance into digital asset transactions.
According to a document shared exclusively with BitKE by a member of the consortium, the stablecoin will be built on an African blockchain, the details of which will be disclosed upon its complete launch by January 2024.
The project is motivated by the need to advance the visibility of the Nigerian Central Bank into digital asset activities in the country. They also want to foster a compliant digital asset ecosystem and to establish a secure environment for digital transactions.
“We have been on the journey for a consortium driven compliant /regulated stablecoin for 2 years now. We are glad we got the nod of the regulators after lots of convincing and assurance for visibility and our openess to regulatory oversight. In our ask we got a bonus by the Central bank by lifting the ban on cryptocurency banking relations,” said one of the operational members who are part of the CBDC consortium.
A look at the composition of the consortium reveals:
According to the consortium, as stablecoins continue to gain traction in the digital finance landscape, it is essential to develop a compliant stakeholder-driven stablecoin within CBN’s existing regulatory framework that ensures:
The cNGN is fully backed with one (1) Naira for every cNGN created and held by Nigeria’s Tier 1 banks for the benefit of cNGN token holders and the Nigerian economy.
Given its interoperability with public blockchains, it can be transferred to holders anywhere in the world for an extremely low fee and can be redeemed for the underlying fiat Naira in compliance with KYC/AML/CFT
regulations.

The voint venture comprises industry leaders, each bringing unique strengths to the table, including the digital, together with key players across the African digital assets Currency Coalition (DCC), ecosystem, committed to an umbrella body for major exchanges operating in Nigeria – collectively serving over 24 million Nigerians and managing transactions exceeding $60.6 billion (between June 2022 – July 2023).