CBN Approves cNGN Stablecoin As Spain Selects Partners For CBDC Testing

CBN Approves cNGN Stablecoin As Spain Selects Partners For CBDC Testing

By: Eva Baxter

The Central Bank of Nigeria (CBN) has granted the Africa Stablecoin Consortium (ASC) approval to trial the cNGN stablecoin in its regulatory sandbox. The slated date for the launch is February 27, 2024. The ASC, a collaboration of Nigerian banks and fintech firms, confirms that the cNGN stablecoin complies with the standards set by CBN, the Nigerian Securities and Exchange Commission, and the Nigerian Financial Intelligence Unit. The cNGN is designed to augment the Nigerian Naira and aims to facilitate seamless global remittances, commerce and trade, while also creating new channels for investment.

Interestingly, in spite of the initial resistance to the eNaira CBDC rolled out by the CBN in 2021, the eNaira continues operations and the CBN has been implementing changes to encourage wider adoption. As opposed to the eNaira, the cNGN remains under the purview of the ASC and it's interoperable with strategic blockchains like Bantu and BNB Smart Chain.

In a parallel development, Spain's central bank, Banco de España, has picked its collaborators for central bank digital currency (CBDC) tests. In a recent announcement, partners Cecabank, Abanca, and Adhara Blockchain were revealed. The pilot for this wholesale CBDC will be carried out in the next six months and will feature simulated processing and settlement of interbank payments using a single tokenized wholesale CBDC or multiple CBDCs from different central banks.

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