Five things to know about cNGN, Nigeria’s stablecoin. #BinanceLaunchpoolINIT #SaylorBTCPurchase #BinanceAlphaAlert
cNGN is Nigeria’s stablecoin, designed to maintain a fixed value, making it practical for payments, remittances, and trading. Unlike traditional cryptocurrencies like Bitcoin, which experience drastic price fluctuations, stablecoins like cNGN operate with stability, ensuring swift and low-cost transactions via blockchain technology.
Here are 5 things to know about Nigeria’s stablecoin:
1: How cNGN is created
cNGN is minted when the naira is deposited into the cNGN reserve. New tokens are issued only when backed by naira deposits. The cNGN website notes that the reserves will be a mix of bank balances, naira bills, Government bonds, and treasury bonds.
For a new stablecoin, it is launching on quite a few blockchains: Assetchain, Bantu, Base, Binance, Ethereum, Polygon, and TRON. Bantu is the primary blockchain for issuance with a balance of Naira 66 million ($44,000) across them all.
2: It is a cryptocurrency
Unlike the e-naira, cNGN is a cryptocurrency. Anyone can go to cNGN block explorer and see the transactions that are going on there. People can integrate them outside of the shores of this country and they are not required to do elaborate KYCs to use the CBDC that is issued by the Central Bank of Nigeria.
3: It is privately managed
cNGN is a privately managed stablecoin that operates within a decentralised financial framework while adhering to regulatory standards, unlike the eNaira which is issued and controlled by the CBN.
4: cNGN is different from e-naira
cNGN and eNaira are different. cNGN is a privately issued stablecoin by WrappedCBDC Ltd., regulated by the SEC. In contrast, eNaira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria (CBN) that operates on a private blockchain.
5: cNGN is available already
According to reports over 66.1 million cNGN has been minted, held by 20 wallet addresses, with 74 on-chain transactions recorded. Currently, cNGN is only available on one cryptocurrency exchange — Busha. Expanding its adoption will require increased education and publicity.
