Last year there was controversy when the Africa Stablecoin Consortium (ASC) confirmed plans to launch a Nigerian stablecoin in association with banks. It turned out that it jumped the gun. Now an ASC affiliate has finally launched a public pilot for the cNGN stablecoin, regulated by the Securities and Exchange Commission(SEC) as part of its Regulatory Incubation Program.
However, there’s no mention of bank involvement, just a few fintechs. Users can buy the stablecoin direct or via exchanges, with Busha the first to list the token.
A key use case is cross border transactions, although one wonders whether there isn’t a preference for US dollar stablecoins for that purpose. Nigeria is one of those countries that has attracted cryptocurrency usage in the face of a collapsing domestic currency value. The state previously accused the Binance crypto exchange of participating in its currency collapse as well as money laundering charges.
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