The rise of stablecoins has reshaped global finance, offering a secure alternative to volatile cryptocurrencies. With daily trade volumes reaching billions of dollars, stablecoins like USDT dominate the digital asset space.
cNGN is a naira-pegged stablecoin developed by WrappedCBDC. It maintains a 1:1 ratio with the naira, meaning 1 cNGN is always equivalent to ₦1. Unlike traditional cryptocurrencies, cNGN is designed for stability and efficiency, enabling seamless cross-border transactions while ensuring financial transparency
Is cNGN a Cryptocurrency?
Yes, cNGN is a stablecoin, a type of cryptocurrency that operates on public blockchains. Unlike volatile assets like Bitcoin and Solana, cNGN maintains a steady value by being backed by an equivalent amount of naira in reserve.
How Does cNGN Maintain Its Stability?
cNGN follows a fiat-collateralization model, ensuring that every issued token is backed by an equal amount of naira stored in commercial banks. This method mirrors the approach used by other major stablecoins like USDT and USDC.
How Is cNGN Created?
cNGN is minted whenever naira is deposited into the cNGN reserve. This ensures that every token issued is fully backed, preventing inflation and instability.
Where Is the cNGN Reserve Stored?
The cNGN reserve is securely held in commercial banks under SEC regulation, ensuring transparency and security.
Is cNGN the Same as eNaira?
No. While both are naira-backed digital currencies, they serve different purposes. eNaira is a central Bank Digital Currency (CBDC) issued by the Central Bank of Nigeria (CBN) and operates on a private blockchain. In contrast, cNGN is a privately issued stablecoin regulated by the SEC and functions on multiple public blockchains.
How Can You Access cNGN?
cNGN can be obtained through exchanges like Busha or directly from the cNGN platform. Direct purchases require user registration, identity verification, and compliance with regulatory guidelines.
Is cNGN Secure?
Yes. Beyond regulatory oversight from the SEC, cNGN partners with leading blockchain security firms like Convexity, specializing in crypto forensics and security.
The Future of cNGN
cNGN represents a significant step toward digital financial stability in Nigeria. With regulatory backing and broad blockchain support, it stands as a strong contender in the stablecoin market. Whether it achieves mass adoption remains to be seen, but its foundation is set for success.
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