In recent weeks, the launch of the cNGN stablecoin has sparked a lot of chatter and speculation in the digital asset world. We’ve seen discussions across social media, with many people asking, “What is cNGN?”, “Why was it created?”, and “Who’s behind it?”

These questions and assumptions — whether direct or indirect — have created a mixed picture of public perception, with some ideas hitting the mark and others missing it. To clear things up, we’ve put together a list of the most common questions and prepared a detailed explanation of what cNGN is and what it is not. This clarification is key to understanding the true nature and purpose of cNGN.

1. Why cNGN? 

cNGN is designed as a compliant, secure, and efficient digital asset that bridges traditional finance and blockchain technology. Its objectives include enhancing payment efficiency, streamlining cross-border transactions, and boosting financial inclusion — all within a regulated framework.

2. Is cNGN a crypto or CBDC? 

cNGN is a regulated stablecoin, meaning it is a type of cryptocurrency pegged to the Naira. It differs from a central bank digital currency (CBDC) like the eNaira in its issuance and governance; cNGN is managed by private sector partners under regulatory supervision.

3. Does it mean that Cryptocurrency is now legal? 

cNGN is a regulated digital asset that complies with Nigeria’s Securities and Exchange Commission (SEC) guidelines. Its existence demonstrates that digital assets developed under proper regulatory frameworks can operate legally, although this does not automatically legalize all cryptocurrencies.

4. Is this a government project? 

cNGN is not a government initiative. It is developed by private sector entities — including fintech companies, and blockchain experts — and operates under strict regulatory oversight to ensure compliance with national standards.

5. How is cNGN issued and how does it work? 

cNGN is a digital currency called stablecoin issued by WrappedCBDC Ltd under the regulatory oversight of the SEC Nigeria. It is minted when a registered merchant deposits Naira on the official platform, cngn.co. An equivalent amount of cNGN is then generated at a 1:1 ratio with the Nigerian Naira on the merchant’s chosen blockchain. cNGN can be seamlessly used across supported blockchain-integrated products, offering fast, secure, and transparent transactions. See more technical details

6. How am I sure you won’t fail like others?

cNGN is a stablecoin developed by WrappedCBDC Ltd. The system is underpinned by robust reserve management, continuous regulatory oversight, and advanced risk-management protocols, which together ensure reliability and sustained operation.

7. Can we convert cNGN 1:1 to Naira? 

Yes, cNGN is designed for a 1:1 conversion with the Naira, allowing users to redeem tokens at a consistent rate, subject to standard procedures and regulatory guidelines.

8. Doesn’t the Naira fluctuate? What is being done to keep the cNGN stable? 

Since cNGN is pegged to the Naira, any volatility in the fiat currency can affect the token’s stability. However, rigorous reserve backing, ongoing audits, and strict regulatory oversight help mitigate these effects and maintain the peg as effectively as possible.

9. Is the cNGN stable? 

cNGN is engineered to maintain stability by being pegged 1:1 to the Nigerian Naira and through transparent reserve management. While its stability is linked to the underlying fiat currency, strict controls and oversight help preserve its value.

10. How does cNGN, a Naira stablecoin pegged 1:1 to Naira (an “unstable” fiat currency), maintain its virtue as a stablecoin? 

Stability is ensured through rigorous reserve backing, continuous audit processes, and strict regulatory oversight. These measures uphold the peg and maintain user confidence, even if the underlying fiat currency experiences fluctuations.

11. Where are Naira reserves for each cNGN minted being held? 

The backing Naira reserves are maintained in approved commercial banks under strict regulatory oversight. This ensures that each token is fully collateralized and secure.

12. Does cNGN provide reserve reports for transparency? 

Absolutely. Regular, audited reserve reports are published, offering real-time visibility into the reserve holdings that support cNGN. This level of transparency helps build trust with users and regulators.

13. Do you have liquidity? 

Yes, cNGN is fully backed by Naira reserves held in approved commercial banks. Additionally, partnerships with regulated financial institutions help maintain sufficient liquidity for smooth and efficient transactions.

14. Do you have the necessary banking relationships with Nigerian lenders to domicile funds to back cNGN? 

Yes, The consortium behind cNGN includes top-tier Nigerian banks and financial institutions, ensuring that all fiat reserves are securely held and managed in full compliance with regulatory requirements.

15. How do you determine the price of cNGN relative to other stablecoins? Will it track CBN forex data or will market forces determine the price?

cNGN is pegged at a fixed 1:1 ratio to the Naira through a reserve-backed mechanism and regulatory oversight. While market trading can introduce minor variations, the peg is maintained by the underlying fiat reserve.

16. Can users trade cNGN against dollar-pegged stablecoins like Tether USDT? 

Yes, Regulated exchanges facilitate trading between cNGN and other stablecoins, such as USDT, while ensuring that all transactions adhere to established regulatory standards for transparency and compliance.

17. Will users be able to trade cNGN with dollar stablecoins like USDT? And if so, will that bring up any regulatory issues for traders given the government’s clampdown on naira/USDT trading last year?

Trading between cNGN and other stablecoins like USDT is supported on regulated platforms. All transactions are subject to strict regulatory oversight, ensuring they are conducted safely and in compliance with relevant legal frameworks.

18. The naira has lost more than 80% of its value to the dollar in the last year. It has also been very volatile this year. Nigerians are used to the stable nature of stablecoins like USDT. What’s the point of a stablecoin pegged to a currency that is anything but stable?

The primary aim of cNGN is not to eliminate macroeconomic volatility but to offer a secure, regulated digital asset that capitalizes on blockchain efficiency. Its benefits include lower transaction costs, faster settlements, and greater financial inclusion, which provide value even in a volatile monetary environment.

19. Given Naira’s volatility against the dollar, what’s the point of a stablecoin? How will it function as a stable token for crypto trading and DeFi transactions such as staking and lending?

While the underlying Naira can be volatile, cNGN provides benefits like faster settlements, lower transaction costs, and enhanced transparency. Its use in crypto trading and DeFi — as well as for traditional payments — offers an efficient digital medium of exchange that leverages blockchain’s advantages.

20. If its DeFi use for things like staking and lending is not going to be emphasized and the focus is on payments and remittance, what’s the advantage of cNGN over existing mobile money and fintech digital payment rails?

cNGN’s advantage lies in its regulated, blockchain-based framework, which offers near-instant settlements, lower transaction costs, and enhanced transparency. Moreover, its potential for DeFi and Web3 applications — such as staking and lending — will be driven by innovative ecosystem builders creating new solutions, thereby complementing its core role as a digital payment medium.

21. What are the real-world applications that cNGN can be applicable to?

Real-world use cases for cNGN include:

• Instant remittances and cross-border payments
• Online retail and e-commerce transactions
• Payroll disbursements
• Enhanced liquidity for Web3 activities
• Integration with digital financial services and potential DeFi applications

22. Where can I use cNGN? 

cNGN is designed for a wide range of applications — from everyday payments and remittances to e-commerce transactions and digital asset trading — making it a versatile tool in both traditional and digital financial ecosystems.

23. Is there a way eNaira, the fiat equivalent, can be said to be equivalent to cNGN? 

While both are pegged to the Naira, they serve distinct roles. The eNaira is a CBDC issued by the government for broad policy objectives, whereas cNGN is a privately developed stablecoin focused on enhancing digital payments and financial inclusion.

24. Is cNGN the same model as the fiat Naira in comparison to USDT as the equivalent to the fiat US dollar?

While cNGN is pegged to the Naira similarly to how USDT is pegged to the US dollar, its model differs significantly. cNGN is developed and managed by a consortium of regulated Nigerian entities with strict oversight, whereas USDT is managed by private organizations under a different regulatory framework.

25. What role do you see cNGN playing in terms of global adoption? 

cNGN is positioned to facilitate efficient cross-border transactions and integrate Nigeria’s financial system with global digital markets. Its regulated, blockchain-based framework supports both local financial inclusion and international digital asset interoperability.

26. What exchange(s) are cNGN currently listed on? 

cNGN is available on state-approved exchanges such as Busha and Quidax. Additional regulated listings are planned as the ecosystem expands.

27. Will cNGN be available on other exchanges, apart from Quidax and Busha? 

Yes, The roadmap includes broader exchange listings once further regulatory compliance and strategic partnerships are secured.

28. How can we list the stablecoin? 

Exchanges and financial institutions interested in listing cNGN should visit the official website and contact the team via email at contact@cngn.co.

29. Does cNGN have off-ramps to NGN currently? 

Yes, Users can convert cNGN back to Nigerian Naira through approved banking channels and regulated exchanges, ensuring a smooth 1:1 conversion process in line with regulatory guidelines.

30. What networks is it on? 

cNGN is natively issued on the Bantu Blockchain. In addition, it is already available on other public blockchain networks — such as Base, Asset Chain, Ethereum, Binance Smart Chain, and Polygon — to enhance accessibility. Future network rollouts will be considered based on market demand and strategic requirements. See networks

31. Is there a line in sight for full integration of cNGN on blockchain networks? 

Full integration is an ongoing objective. cNGN is already fully operational on its native Bantu Blockchain and has been integrated on Ethereum, Binance Smart Chain, and Polygon. These existing integrations ensure current accessibility while laying the groundwork for additional network rollouts in response to market needs. See integrated networks

32. How can people outside Nigeria (like diasporan Nigerians) buy and move cNGN for remittance purposes? 

Diasporan Nigerians can purchase cNGN via regulated international exchanges or approved platforms. Once acquired, tokens can be transferred securely using blockchain protocols and then converted to Naira at local off-ramps — all in full compliance with both local and international regulatory requirements.

33. Will the token offer yield opportunities or exposure to instruments such as T-bills and bonds? 

At present, cNGN’s focus is on providing a stable digital payment solution. While yield opportunities are not its primary objective, future developments might explore integrations with other financial instruments in a compliant manner.

34. Where can I learn more about cNGN? 

Detailed information — including technical specifications, FAQs, and whitepapers — is available on the official cNGN website and through related regulatory and academic publications.

35. Is there a whitepaper to read about cNGN? 

Yes, A comprehensive whitepaper, detailing the technical framework, governance model, and operational mechanics of cNGN, is available on the official website. For further details, please visit here

As we continue to receive insightful questions from our community, we’ll keep providing clear and timely updates to ensure everyone stays informed. To keep up with the latest developments, be sure to subscribe to our Medium and follow our social media channels. Thanks for being part of our journey!

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If you would like to participate in the cNGN ecosystem, please write to us at contact@cngn.co.

Embrace the future with cNGN — where tradition meets innovation in perfect harmony.