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Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 - Business - Nairaland

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Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by FreeStuffsNG: 11:58pm On Dec 28, 2023
Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024


Following the Central Bank of Nigeria's circular, a consortium of Nigerian banks, fintechs, and blockchain companies are developing a Naira stablecoin, cNGN, with sources close to the project stating a planned launch in 2024.

Naira Stablecoins
The concept of a Naira stablecoin has been floating around for several years, with previous attempts in the past. The most recent was NGNT by the Token Mint consortium in 2019, consisting of major Nigerian crypto exchanges and African communities, including Helicarrier and Busha. NGNT is pegged 1:1 with the Naira and is on the Binance Smart Chain and the Ethereum Network, as BEP-20 and ERC-20 tokens, respectively.


The New Naira Stablecoin (cNGN
)
The newly proposed cNGN will be a compliant and regulated consortium-based Naira stablecoin. The cNGN will be pegged 1:1 with NGN, but unlike previous NGN stablecoin attempts, it will be held by Nigerian banks.

The key partners in the consortium include prominent Nigerian tier-1 banks such as First Bank, Access Bank, Sterling Bank, and Providus Bank, payments companies Budpay, Kora (formerly KoraPay), and Interswitch, and Blockchain consultants Convexity and Interstellar. The proposed cNGN stablecoin, similar to existing stablecoins, will facilitate seamless international transfer of NGN.

Nevertheless, there are still many unknowns about the cNGN that will need to be clarified by the consortium, such as the blockchain it will use and the planned apps and services for consumers.

Differences With The eNaira
There are a few key differences between the eNaira and cNGN worth noting; for starters, the cNGN will be a crypto, like other stablecoins, and not a CBDC. The cNGN will be maintained by the consortium and will be held by the banks in the consortium.

The CBN will not have direct control over the cNGN in the same way it does with the eNaira, and the role it, along with the Nigerian Securities and Exchange Commission, will be playing is one of regulatory oversight.

The benefits and effects of the cNGN stablecoin on monetary policy and FX could be more significant than the eNaira, given its wider target reach. Further, the cNGN might indeed have greater adoption and success than the eNaira, especially given the recent reversal of the CBN's bitcoin ban and their new guidelines on digital assets.


The cNGN, eNaira, And Other Nairas In 2024
There was initial speculation for the motives of the CBN in 2021 for its bitcoin ban, as being done to pave the way for its CBDC to dominate. However, even if true, it certainly didn't work. Nevertheless, it goes without saying that the cNGN would only be possible with the recent CBN circular and their cooperation as a regulator alongside the Nigerian SEC.

Following the harsh year in Nigeria and the Naira situation, in 2024, there will now be four distinct instances of the Naira in circulation, a mix of both digital (NGN, eNaira, and cNGN) and old and new physical Naira notes, which is sure to persist some of the economic challenges observed in 2023 and have effects on monetary policy, FX controls and overall market dynamics.

https://www.forbes.com/sites/digital-assets/2023/12/27/nigerian-banks-set-to-launch-compliant-naira-stablecoin-in-2024/?sh=401eaad98484

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Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by FreeStuffsNG: 11:58pm On Dec 28, 2023
The key partners in the consortium include prominent Nigerian tier-1 banks such as First Bank, Access Bank, Sterling Bank, and Providus Bank, payments companies Budpay, Kora (formerly KoraPay), and Interswitch, and Blockchain consultants Convexity and Interstellar. The proposed cNGN stablecoin, similar to existing stablecoins, will facilitate seamless international transfer of NGN.

Nevertheless, there are still many unknowns about the cNGN that will need to be clarified by the consortium, such as the blockchain it will use and the planned apps and services for consumers.

If this is true then those publicly-quoted banks must have previously issued a forward-looking statement to investors through the Nigerian Stock Exchange. They did no such thing so this will contravene SEC rules.

Furthermore, I don't believe that CBN will allow banks operate a monetary system it will not be able to control and regulate.

This news ri bakan for now until CBN clarifies it. Check my signature for free stuffs!

6 Likes 2 Shares

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Righthussle: 12:00am On Dec 29, 2023
Hmmm
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Tjra: 12:03am On Dec 29, 2023
Would be interesting if true.

2 Likes 1 Share

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by LikeAking: 12:03am On Dec 29, 2023
Nonsense!

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Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by thesicilian: 12:20am On Dec 29, 2023
How far with the e-naira initiative? undecided

55 Likes 1 Share

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Nbote(m): 12:33am On Dec 29, 2023
Lolzzzz... We are a very unserious country. All we want to do is join the bandwagon and embarass ourselves at it. Naira as a stable coin is supposed to achieve what exactly?
Since the ban on crypto transactions have been lifted, it removes the whole insecurity of P2P transactions and one can just simply pay for any coin using their cards.
zionstaar75:
just say you don't understand, and stop behaving like an idiot

The problem with your likes is not just how daft you are but how you think to believe everyone operates in the same level of ignorance like you and your lots. The fact that all you had to say revolved around an insult shows how grossly ignorant you are on the subject matter but still gleefully showing it off

Opolopoopolonio:


People using USD as a security instrument will have a worthy alternative smiley

How would it be a worthy security instrument when it is still going to be naira in coin value. The usdt is the coin value of the US dollar. The eNaira was introduced to do same but it was a foolish move. Since the ban on crypto has been removed, why do I need to fund my wallet by buying naira as a stable coin. Naira whether as a coin or not will still be dependent on how much the dollar is traded. Why won't I just fund my wallet directly from my account and then convert to usdt.?

45 Likes 4 Shares

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Godfullsam(m): 12:53am On Dec 29, 2023
The CBN should try and reduce the volume of naira in circulation. This will drive down the price of commodities and minimize inflation.

All these digital naira initiative can only work in advanced countries, not in Nigeria.

3 Likes 1 Share

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Opolopoopolonio: 12:53am On Dec 29, 2023
Nbote:
Lolzzzz... We are a very unserious country. All we want to do is join the bandwagon and embarass ourselves at it. Naira as a stable coin is supposed to achieve what exactly?

People using USD as a security instrument will have a worthy alternative smiley

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by tollyboy5(m): 2:14am On Dec 29, 2023
Interesting days head. In what exchange rate will i have to use the naira coin to buy other crypt0?
Because naira na 1200

11 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Blackfire(m): 3:43am On Dec 29, 2023
E naira was hyped more than this... yet.....

11 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by MASTAkiLLAh(m): 3:52am On Dec 29, 2023
ENaira in the mud, billions down the drain grin

17 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by emmabest2000(m): 6:12am On Dec 29, 2023
confused Government

15 Likes 1 Share

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Lanretoye(m): 6:12am On Dec 29, 2023
All these no effect policies,i hope this is not another one of them.
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Haydens: 6:13am On Dec 29, 2023
When naira is not stable them wan launch stable fickle coin

7 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by onlinediva: 6:13am On Dec 29, 2023
Hmmm
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by oz4real83(m): 6:13am On Dec 29, 2023
Godfullsam:
The CBN should try and reduce the volume of naira in circulation. This will drive down the price of commodities and minimize inflation.

All these digital naira initiative can only work in advanced countries, not in Nigeria.
things are expensive not because of too much money in circulation but because govt has never done anything to reduce the cost of production and logistics in the supply chain. Many companies still produce their products using diesel because power is still very poor in Nigeria, our naira keeps dying everyday which makes getting raw materials for production more expensive since most raw materials are denominated in dollars. Transporting finished products and other logistics issues are also a very expensive venture. The govt is doing little or nothing to curtail these issues

9 Likes 1 Share

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by oz4real83(m): 6:13am On Dec 29, 2023
The govt has done nothing to rescue the naira and the banks want to create a form of cryptocurrency denominated in naira shocked. These people want to kill people's savings. Govt should first create policies to strengthen the naira to make it less risky when people invest in naira-denominated investments.

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Maxxim: 6:16am On Dec 29, 2023
Will be backed with what exactly 😂
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by rocknation62(m): 6:16am On Dec 29, 2023
We no serious for dis CORN-tree

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by McLizbae: 6:18am On Dec 29, 2023
Na still the same 1200 o! As long as na still naira.
tollyboy5:
Interesting days head. In what exchange rate will i have to use the naira coin to buy other crypt0?
Because naira na 1200
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by aspabay(m): 6:18am On Dec 29, 2023
Time to key Into this before you regret later. It is not everything you criticise for criticising sake.

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by ALABACONNECT(m): 6:18am On Dec 29, 2023
Them wan rip us yet again.

3 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by sofeo(m): 6:34am On Dec 29, 2023
We are actually getting there.

2 Likes

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by nwakibie3(m): 6:35am On Dec 29, 2023
Godfullsam:
The CBN should try and reduce the volume of naira in circulation. This will drive down the price of commodities and minimize inflation.

All these digital naira initiative can only work in advanced countries, not in Nigeria.

I think that's what at play now or what else do you think that caused this naira scarcity?

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by KingKO22: 6:37am On Dec 29, 2023
We shall get there

Good move

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by fineboynl(m): 6:37am On Dec 29, 2023
Cbn is looking at a currency where they can influence it rate and manipulate. It might end up like another pyramid scheme

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by omowolewa: 6:39am On Dec 29, 2023
Okay
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by modernWays: 6:40am On Dec 29, 2023
Unless policy, what is the need for this if you can't still convert your Dollar to naira and vise visa at official rate.

NGN/USD is still exchange at black market rate on all exchanges all over the world, and this one too won't be different.

1 Like

Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by money121(m): 6:45am On Dec 29, 2023
We dey wait oo
Re: Nigerian Banks Set To Launch Compliant Naira Stablecoin In 2024 by Obviouslyblunt: 6:46am On Dec 29, 2023
Naira itself is not stable, but you wanna peg a coin to it?
Lmaoo. 🥱🤣

3 Likes

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