Nigeria Sets Sights on Introducing a New Stablecoin
Nigerian banks are teaming up with the nation’s Central Bank and various blockchain companies to launch a new stablecoin, Naira (cNGN), slated for 2024. This comes after previous unsuccessful attempts by the government to initiate a similar project and a digital national currency.
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Nigerian banks are teaming up with the nation's Central Bank and various blockchain companies to launch a new stablecoin, Naira (cNGN), slated for 2024. This comes after previous unsuccessful attempts by the government to initiate a similar project and a digital national currency.
This new endeavor stands apart from earlier attempts. The stablecoin, managed by a consortium of banks, will be blockchain-based, with the government officially endorsing it as legal tender. Key players in this project include notable banks like First Bank and Sterling Bank, alongside financial entities such as Budpay, Kora, and more.
Yet, several critical questions remain unanswered. Decisions are pending on the choice of blockchain technology, the types of applications to roll out following the stablecoin's release, and strategies to engage the public in adopting this new cryptocurrency, especially considering the abundance of dollar-pegged alternatives.
The Central Bank of Nigeria had previously reversed a ban on commercial banks conducting transactions with crypto apps (such as exchanges and trading platforms), a move that sparked controversy among P2P traders.
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