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Nigeria cNGN stablecoin: everything you need to know about cNGN and eNaira CBDC

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  • Ozili, Peterson K

Abstract

Several firms have expressed an interest to develop a stablecoin in Nigeria called the compliant-Nigerian-Naira (cNGN). The purpose of this article is to explore the features, benefits, and challenges of issuing a stablecoin in Nigeria known as the cNGN stablecoin. The study also compares the proposed cNGN with the eNaira central bank digital currency and offer several differences that are worth noting. The study shows that the proposed cNGN stablecoin offers many benefits. They include enabling faster payments, ensuring seamless cross-border payments, and increasing participation in the financial system for those who are already banked. The study also identifies some challenges of the proposed cNGN stablecoin. The study concludes by stating that the long-term success of the cNGN will be guaranteed if majority of Nigerians embrace it and if cNGN issuers collaborate with regulators to ensure that the cNGN is designed in a way that achieves financial stability objectives, transparency, and consumer protection.

Suggested Citation

  • Ozili, Peterson K, 2024. "Nigeria cNGN stablecoin: everything you need to know about cNGN and eNaira CBDC," MPRA Paper 120801, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120801
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    File URL: https://mpra.ub.uni-muenchen.de/120801/1/MPRA_paper_120801.pdf
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    References listed on IDEAS

    as
    1. Jon Frost & Hyun Song Shin & Peter Wierts, 2020. "An early stablecoin? The Bank of Amsterdam and the governance of money," Working Papers 696, DNB.
    2. Ante, Lennart & Fiedler, Ingo & Strehle, Elias, 2021. "The influence of stablecoin issuances on cryptocurrency markets," Finance Research Letters, Elsevier, vol. 41(C).
    3. David Dequech, 2013. "Is money a convention and/or a creature of the state? the convention of acceptability, the state, contracts, and taxes," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 36(2), pages 251-274.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Nigeria; stablecoin; cNGN; blockchain; eNaira; CBDC; compliant Nigerian Naira;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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