Nigerian Stablecoin Consortium Seeks Central Bank Approval After Making a U-Turn on Stablecoin Launch

The Nigerian stablecoin consortium has stated it won’t be launching a stablecoin in late February as beforehand suggested. Instead, the consortium, which is comprised of banks and fintech startups, stated it plans to launch the stablecoin solely after it will get the inexperienced gentle from the central financial institution.

Nigerian Stablecoin Project in False Start

The Africa Stablecoin Consortium (ASC), a gaggle of Nigerian fintech startups and banks, stated on Jan. 9 that it’ll not proceed with the stablecoin launch as beforehand introduced. Instead, the consortium will have interaction the central financial institution so it will probably “participate in its regulatory sandbox program.”

This about-face by the Nigerian consortium comes only a few days after it launched a press release by which it named Feb. 27 because the cNGN stablecoin launch date. As reported by a number of media retailers, together with Bitcoin.com News, the ASC claimed that the Central Bank of Nigeria (CBN) had permitted its plan to launch the stablecoin.

Stablecoin Project Not Approved by Central Bank

The consortium recommended that the naira-backed digital forex would additionally “pave the way for further advancements in CBDC.” However, in its newest assertion, the ASC implied that the CBN is but to greenlight the stablecoin venture:

“The Africa Stablecoin Consortium wishes to clarify that cNGN will not be publicly launched on the 27th of February, 2024. Instead, we are engaging with the appropriate regulatory bodies, including the Central Bank of Nigeria, to participate in its regulatory sandbox program,” the ASC assertion stated.

The consortium added that it’s dedicated to adhering to rules and tips and can due to this fact solely launch the stablecoin after receiving the required approval. The ASC additionally advised stakeholders that it stays “dedicated to providing accurate and transparent information.”

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