Quidax, the Nigerian crypto startup that received a provisional licence in August 2024, has listed cNGN, the country’s first regulated stablecoin pegged to the naira. The move, which comes a month after another provisionally-licenced crypto startup Busha listed the cNGN, underscores Nigeria’s evolving approach to crypto regulation, balancing oversight with the growing adoption of digital currencies.
The March 12 listing will allow Quidax users to send and receive cNGN between wallets with the potential for wider use in payments, transfers, and digital currency exchanges. With Nigeria’s Securities and Exchange Commission (SEC) overseeing cNGN’s rollout, the government seems focused on integrating crypto into the financial system rather than restricting it.
Quidax declined to comment.
After three years of development, the African Stablecoin Consortium (ASC), comprising Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar, launched the cNGN stablecoin in February 2024. When the SEC opened the Regulatory Incubation (RI) programme in June 2024, the consortium applied under “WrappedCBDC Ltd,” a joint venture created for blockchain-based digital currency projects and received approval in principle in August 2024.
Convexity did not immediately respond to a request for comments.
Digital Currency Coalition did not immediately respond to a request for comments.
Interstellar did not immediately respond to a request for comments.
Since its launch, the cNGN stablecoin has seen a gradual increase in adoption, with its website reporting 121.3 million tokens in circulation and 127 holders. Initially listed on Busha, the addition of Quidax expands its reach.
WrappedCBDC vets exchanges seeking to list cNGN, assessing their reserve management capabilities to maintain supply stability. A ₦100,000 verification fee is also required to cover third-party service costs.
However, some crypto users have questioned the necessity of cNGN, arguing that the Naira is already widely available on major crypto platforms.
“There’s already fiat Naira existing in the crypto ecosystem,” said Chibunna Kingsley, a Lagos-based crypto trader. “So it is hard to see why traders need the cNGN.”
Yet there is an opportunity for the cNGN to allow decentralised platforms that have previously delisted the Naira to adopt the stablecoin, allowing more Nigerians to trade on larger exchanges. The ASC aims to get the stablecoin listed on more crypto exchanges to solidify its case as a remittance tool. The real battleground will be user adoption, with cNGN’s fate resting on whether it can outpace existing Naira integrations and prove its distinct value proposition.
