Recently, an announcement was made about the collaboration of Nigerian banks in a project to create a new stablecoin, cNGN. This digital currency is designed to strengthen Nigeria's economy and benefit token holders. A key feature of cNGN is its peg to the Nigerian national currency, the Naira.

Like other well-known stablecoins, cNGN is compatible with various public blockchains, which facilitates international transfers and expands its use globally. Companies such as Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity are involved in the project.

A distinctive feature of cNGN is its development on public blockchains, including Bantu, Polygon, Ethereum, BNB Smart Chain, and Tron. This sets it apart from the Central Bank of Nigeria's digital currency, eNaira, which has broader functionalities and is controlled by the Central Bank of Nigeria (CBN). While eNaira is intended for broader use, cNGN is managed by a consortium of Nigerian banks.

The Central Bank of Nigeria (CBN) has supported the creation of cNGN, seeing it as a way to promote and simplify the use of blockchain technology in the country's financial system. This decision also facilitates the process of obtaining permissions from the Nigerian Securities and Exchange Commission for providing digital services.

This initiative represents a significant step in the development of Nigeria's digital economy, offering new opportunities for financial market participants and promoting wider adoption of blockchain technology in the country.