The Central Bank of Nigeria approved the cNGN Naira stablecoin initiative by the Africa Stablecoin Consortium (ASC). The ASC aims for compliance, transparency, and consumer safety by collaborating with regulators, conducting regular audits, and publishing asset records. The cNGN operates by generating tokens when users deposit Naira and destroying tokens upon withdrawal to maintain a 1:1 peg to the Naira.

The cNGN is envisioned as complementing the eNaira, facilitating cross-border trade and aiming to improve remittances for Nigerians abroad while aiding the unbanked. It’s currently compatible with the Bantu network and BNB Smart Chain, with plans to expand to other major chains like Ethereum and Tron using the Automated Multi-chain Transfer Protocol (AMTP).

However, concerns arise due to the Naira’s volatility and ongoing devaluation, posing challenges for the cNGN’s stability. Nonetheless, hopes rest on government reforms, CBN controls, and the cNGN’s potential impact to address Nigeria’s economic challenges.

Nigeria leads Africa in cryptocurrency regulation, but questions linger about the impact of strict KYC and AML laws on the ecosystem’s innovation and individuals/firms. Despite this, bitcoin remains strong in Nigeria, with predictions of continued growth in 2024, driven by rising adoption, significant crypto P2P exchange volumes, new bitcoin ventures, and advancements in renewable energy-based bitcoin mining. These developments are expected to impact the Nigerian economy, attracting investments from domestic and foreign sources seeking to include bitcoin opportunities in their portfolios.