Nigerian crypto startup Quidax has listed cNGN, the country's first regulated stablecoin pegged to the naira, marking a significant milestone in Nigeria's evolving approach to crypto regulation. The listing, which comes a month after another provisionally-licenced crypto startup Busha listed the cNGN, demonstrates the government's focus on integrating crypto into the financial system rather than restricting it.

The cNGN stablecoin, launched by the African Stablecoin Consortium (ASC) in February 2024, has seen a gradual increase in adoption since its launch. With 121.3 million tokens in circulation and 127 holders, the addition of Quidax expands its reach, allowing users to send and receive cNGN between wallets with the potential for wider use in payments, transfers, and digital currency exchanges.

The ASC, comprising Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar, developed the cNGN stablecoin over three years. The consortium applied for the Regulatory Incubation (RI) programme under "WrappedCBDC Ltd," a joint venture created for blockchain-based digital currency projects, and received approval in principle in August 2024. WrappedCBDC vets exchanges seeking to list cNGN, assessing their reserve management capabilities to maintain supply stability, and requires a ₦100,000 verification fee to cover third-party service costs.

While some crypto users have questioned the necessity of cNGN, arguing that the Naira is already widely available on major crypto platforms, 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.

Chibunna Kingsley, a Lagos-based crypto trader, expressed skepticism about the need for cNGN, stating, "There's already fiat Naira existing in the crypto ecosystem. So it is hard to see why traders need the cNGN." However, the cNGN stablecoin presents an opportunity for decentralised platforms that have previously delisted the Naira to adopt the stablecoin, allowing more Nigerians to trade on larger exchanges.

Nigeria's Securities and Exchange Commission (SEC) oversees cNGN's rollout, demonstrating the government's commitment to balancing oversight with the growing adoption of digital currencies. As the crypto landscape in Nigeria continues to evolve, the success of cNGN will be closely watched, with implications for the country's financial system and the broader crypto industry.