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

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

The Nigerian stablecoin consortium has said it will not be launching a stablecoin in late February as previously advised. Instead, the consortium, which is comprised of banks and fintech startups, said it plans to launch the stablecoin only after it gets the green light from the central bank.

Nigerian Stablecoin Project in False Start

The Africa Stablecoin Consortium (ASC), a group of Nigerian fintech startups and banks, said on Jan. 9 that it will not proceed with the stablecoin launch as previously announced. Instead, the consortium will engage the central bank so it can “participate in its regulatory sandbox program.”

This about-face by the Nigerian consortium comes just a few days after it released a statement in which it named Feb. 27 as the cNGN stablecoin launch date. As reported by several media outlets, including Bitcoin.com News, the ASC claimed that the Central Bank of Nigeria (CBN) had approved its plan to launch the stablecoin.

Stablecoin Project Not Approved by Central Bank

The consortium suggested that the naira-backed digital currency would also “pave the way for further advancements in CBDC.” However, in its latest statement, the ASC implied that the CBN is yet to greenlight the stablecoin project:

“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 statement said.

The consortium added that it is committed to adhering to regulations and guidelines and will therefore only launch the stablecoin after receiving the necessary approval. The ASC also told stakeholders that it remains “dedicated to providing accurate and transparent information.”

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