We recently listed Compliant Naira (cNGN) on Quidax, and there have been many questions around the new stablecoin.
This article will explain what cNGN is, how it works, and address everything you need to know about the Naira-backed stablecoin.
What is cNGN?
You probably know of stablecoins like Tether (USDT) and USD Coin (USDC), which are pegged to the US Dollar. Complaint Naira (cNGN) is the Nigerian stablecoin pegged to the Nigerian Naira (NGN) in a 1:1 ratio.
That means 1 cNGN is equal to 1 Naira, so it’s like having the Naira on the blockchain. With cNGN, you can avoid the price swings that come with cryptocurrencies like Bitcoin and Ethereum.
How Does it Work?
cNGN is a Naira-backed stablecoin. It’s a digital form of the Naira that exists on various blockchains. These include Assetchain, Bantu, Base, Binance, Ethereum, Polygon, and TRON, but Bantu is the primary blockchain that issues the token to users.
You can buy and sell cNGN on cryptocurrency exchanges. You can also trade with it if you prefer less-risky market conditions. cNGN is reportedly 100% backed by Naira reserves held at licenced custodian banks. That means for every existing cNGN, there’s an equivalent amount of Naira stored in the bank.
However, it’s important to note that cNGN is a privately managed stablecoin that is regulated by the Nigeria Securities and Exchange Commission (SEC) and not controlled or owned by the Central Bank of Nigeria (CBN).
Who Created cNGN?
The cNGN token was birthed from a collaboration between Wrapped CBDC Ltd. and the Africa Stablecoin Consortium (ASC). The consortium comprises banks, fintechs, and blockchain platforms, and its goal was to create a faster, more efficient, and cheaper way to make payments within Nigeria and in the diaspora, using blockchain technology.
cNGN was then created in February 2025 as the first regulated stablecoin in Nigeria and it has been listed on top African exchanges like Quidax.
What Can You Use cNGN For in Nigeria?
There are various things cNGN can be used for in Nigeria. These include, but are not limited to:
Online Payments
cNGN can be used to process online payments due to its accessibility and lower transaction fees than traditional payment methods. Though not many businesses accept direct cNGN payments yet, you can convert it to Naira or other cryptos and pay for goods and services.
International Remittances
Sending money to Nigeria from abroad or receiving payments from international clients can be smoother using cNGN. Instead of sending fiat Naira via banks and fintech apps that charge more expensive fees and take longer to process, cNGN offers a cheaper and faster alternative to move Naira around.
Crypto Trading
Like other cryptocurrencies, you can trade cNGN on cryptocurrency exchanges. For instance, you can pair it with NGN on Quidax and trade the pair or convert it to other cryptos like Tether (USDT) and trade the USDT/NGN pair.
Stable Savings
Instead of saving your money in the bank or investment platforms that may require you to lock your funds, you can convert it to cNGN and store it on the blockchain. This gives you access to your funds whenever you need it. Plus, it maintains the same value as the Naira because bank charges and other fees won’t be deducted from it.
How Can You Buy cNGN?
The only way to buy cNGN in Nigeria is through a crypto exchange like Quidax. To buy cNGN, follow the steps below:
- Sign in to your Quidax account (or sign up if you don’t have one)
- Complete KYC if you haven’t
- Deposit Naira directly from your bank account or via the Pocket (Abeg) app
- Search for “cNGN” in the “Wallets” section
- Enter the amount of cNGN you want to buy and complete the transaction
What is the Difference Between cNGN and eNaira?
cNGN and eNaira are Naira-backed digital currencies, but they are different. cNGN is a privately issued stablecoin regulated by the SEC. It also operates on public blockchains.
Conversely, eNaira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria (CBN) and it operates on a private blockchain.
Final Thoughts
cNGN is bridging the gap between traditional finance and blockchain technology in Nigeria. Considering the country’s past relationship with crypto, including the ban, the SEC-licenced cNGN could be a pointer to establishing a more crypto-friendly environment.
Ready to buy or sell cNGN in Nigeria, sign up on Quidax and get trading.
Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
