cNGN is Nigeria's first regulated stablecoin launched in February 2025, offering several benefits to users and businesses.
What is cNGN?
Launched in February 2025, cNGN is pegged to the Nigerian Naira at a 1:1 ratio and fully backed by reserves of safe assets like bank deposits and government bonds. Developed by WrappedCBDC Ltd in partnership with Convexity, Interstellar, and AlphaGeeks Tech, cNGN operates under the supervision of the Nigerian Securities and Exchange Commission.
Comparison of cNGN and eNaira
While cNGN and eNaira may seem similar—both are digital representations of the Naira—they serve different purposes. According to Olayinka Omoniyi, cNGN is a private initiative aimed at enhancing digital payments and financial inclusion. Unlike the eNaira, which is government-controlled, cNGN operates on public blockchains, providing greater transparency.
Potential and Challenges of cNGN
cNGN has significant potential in decentralized finance (DeFi) and can offer many advantages for users and businesses, such as instant settlements and low fees. However, its adoption is hindered by low awareness and infrastructure issues. Omoniyi emphasizes the need for educational campaigns and partnerships with fintech companies to accelerate adoption.
With cNGN, Nigeria has the opportunity to modernize its financial sector, providing more accessible financial services, although several challenges must be addressed for success.
