cNGN enters the digital currency scene, usurping eNaira's dominance
Nigeria's cNGN Stablecoin Leads the Way in African Digital Finance
Nigeria's private stablecoin, cNGN, has been officially approved by the Central Bank of Nigeria and is making waves in the African digital finance landscape. This regulatory shift, under the 2025 Investment and Securities Act, comes after months of restrictions on crypto exchanges like Binance, marking a significant step towards fostering stablecoin innovation on terms that protect markets and empower Nigerians.
As of now, cNGN is actively being used with over 36 million tokens issued and significant transaction volumes around $2.5 million across decentralized applications (dApps), on-chain swaps, GameFi, and merchant payments. The stablecoin is integrated in innovative financial products such as those from Xend Finance, allowing investors—including international ones—to access Nigerian short-term debt instruments with annual returns exceeding 20%, by facilitating direct on-chain investment and bypassing complex foreign exchange hurdles.
Compared to the Central Bank of Nigeria’s eNaira, cNGN represents a complementary private-sector innovation allowing more flexible and diverse use cases, particularly in tapping into the liquidity and investment markets of Nigeria's informal economy. While the eNaira is government-issued, cNGN brings private-sector agility and has been designed to meet market needs for dollar-pegging and user-centric fintech solutions.
The cNGN's approval signals Nigeria’s openness to regulated stablecoins while maintaining a firm regulatory guardrail, contrasting with earlier stringent bans. In the broader African context, Nigeria's private stablecoins like cNGN are part of a continental movement recognizing the growing importance of stablecoins for financial services, cross-border payments, and hedging against local currency volatility. Other African countries, including Kenya and South Africa, are also exploring stablecoin adoption, but Nigeria’s regulatory and innovation measures position it as a leader in the space.
Meanwhile, StarkWare, the company behind the Ethereum layer-2 network Starknet, has set up a $4 million venture fund to support blockchain startups in Africa. The next edition of the Mariblock Roundtable is coming up soon, and subscribers to Mariblock Weekly will receive the first heads-up.
In South Africa, cryptocurrencies are not recognized as legal tender, so merchants cannot accept cryptocurrency payments directly; they can do so through crypto-to-fiat gateways like 6DOT50 and CryptoConvert. South African crypto payments company 6DOT50 has partnered with car financing platforms to enable purchases using cryptocurrency at 1,400 dealerships nationwide. Abu Dhabi's crypto mining firm Phoenix Group has entered Africa with a power purchase deal.
A report from Techcrunch states that stablecoins are finding product-market fit in emerging markets. Mariblock founder, Oluwaseun Adeyanju, will be in Nairobi this week, representing Mariblock at the Africa Tech Summit and is open to connections with blockchain and digital asset builders.
Nigeria was first to launch a CBDC in Africa with the eNaira in 2021. As of Feb. 9, 66.1 million cNGN tokens were in circulation, distributed among 18 holders. Forbes reported an incident of an African billionaire's X account being hacked by crypto scammers. VISA has opened applications for Cohort 4 of its Africa Fintech Accelerator Program with a deadline of Mar. 25, 2025.
Wrapped CBDC was one of the seven entities to which Nigeria's Securities and Exchange Commission granted provisional licenses last year. Cedar Money, a stablecoin payment platform, has raised a $9.9 million seed fund. The cNGN, a naira-pegged stablecoin, has launched and is now available on the provisionally licensed exchange, Busha, and the cNGN platform. African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort. The Financial Sector Conduct Authority (FSCA) in South Africa has issued operational licenses to 248 crypto firms.
In summary, Nigeria's cNGN stablecoin is a pivotal example of how private stablecoins can complement national digital currencies like the eNaira, driving financial innovation and inclusion while adhering to newly enforced regulatory standards. The growing interest in stablecoins across Africa, particularly in Nigeria, positions the continent as a leader in the global digital finance landscape.
- The Central Bank of Nigeria has approved Nigeria's private stablecoin, cNGN, marking a significant step towards fostering stablecoin innovation in Nigeria.
- cNGN is integrated in innovative financial products, such as those from Xend Finance, allowing investors, including international ones, to access Nigerian short-term debt instruments with high returns.
- Compared to the Central Bank of Nigeria’s eNaira, cNGN represents a complementary private-sector innovation, offering more flexible use cases, particularly in tapping into the liquidity and investment markets of Nigeria's informal economy.
- StarkWare, the company behind Ethereum's layer-2 network Starknet, has established a $4 million venture fund to support blockchain startups in Africa.
- Merchants in South Africa cannot accept cryptocurrency payments directly but can do so through crypto-to-fiat gateways like 6DOT50 and CryptoConvert.
- Crypto payments company 6DOT50 has partnered with car financing platforms to enable purchases using cryptocurrency at 1,400 dealerships nationwide.
- Stablecoins are finding product-market fit in emerging markets, with Nigeria leading the charge in Africa, as shown by the growing popularity of the cNGN stablecoin.
- The annual Africa Tech Summit will host Mariblock founder, Oluwaseun Adeyanju, who is open to connections with blockchain and digital asset builders, demonstrating Africa's growing influence in the global digital finance landscape.
