CBN approval of cNGN paves the way for wide adoption of cryptocurrency in Nigeria.
Nigerians anxiously await the launch of cNGN on the 27th of February, 2024.
cNGN seeks to embrace more adoption than the eNaira.

Amidst the digit currency revolution, the approval of cNGN by the Central Bank of Nigeria (CBN) serves as a confirmation of the reversal of CBN's crypto ban. This marks a pivotal moment in Nigeria's financial technology sectors, paving the way for development and financial inclusion. Despite being faced with similar challenges such as limited digital access, cNGN is positioned to have wider adoption over the eNaira due to its potential impact on monetary policy as well as its cryptocurrency nature.

In this article, we will explore cNGN alongside eNaira as it seeks to gain wider adoption. We will also talk about their differences and the impact of NGN on Nigeria's economy.

What Exactly Is eNaira And cNGN?

eNaira: The eNaira is the digital equivalent of the physical Naira and functions similarly to cash. The eNaira requires an eNaira wallet to store and execute transactions.

cNGN: cNGN will be a type of cryptocurrency known as a stablecoin. It is designed to maintain a stable value by pegging its worth to a reserve of real-world assets, like the Nigerian naira.

What's The Difference Between eNaira And cNGN?

Unlike the eNaira, which is a Central Bank Digital Currency (CBDC), controlled and managed by the CBN, the cNGN will be owned and managed by technology firms like the African Stablecoin Consortium (AFC), Financial Stability Board (FSB) and the Global Stablecoin (GSC).

While the eNaira wallet is designed to have a tier 0 - tier 3 layer of account setup, the cNGN token will be accessible on multiple crypto exchanges, just like other known stablecoins.

As cNGN will be made available in multiple exchanges, it makes it more flexible than the eNaira.

cNGN is designed to be globally accessible, unlike the eNaira which is for local usage within the confines of the country.

What Is the Role Of cNGN In Nigeria's Economic Growth?

One of the benefits of cryptocurrency is its ease and speed of transactions across borders. As a stable cryptocurrency, cNGN will play an important role in Nigeria's economic growth. A few of them are:

The simplification of international transactions.

Introducing cNGN will simplify and lower transaction costs related to currency conversion and international transfer fees, encouraging increased international engagement for both individuals and businesses.

Promotion Of International Trade

As the cNGN becomes globally accessible on exchanges, it will facilitate international trade by allowing fast and cost-effective business transactions across borders.

Financial Inclusion

The user-friendly design of cNGN will allow more individuals to access the token directly, bypassing the need for traditional banking channels.

Conclusion

As we look forward to the launch of cNGN on the 27th day of Feb 2024, the crypto landscape is ready to take a new shape as more people will be ushered into the industry soon. Unlike the eNaira which is directly controlled by the CBN, the decentralized, transparent, and scalability nature of cNGN makes it a currency everyone will want to reckon with, all thanks to the blockchain technology. The birth of cNGN is perceived to be a boost to the economic state of the country as it aims to simplify international trade among other benefits.