Quidax has Become the Second Cryptocurrency Exchange to Offer the Naira Stablecoin (cNGN) for Trading

Quidax, a popular cryptocurrency exchange based in Nigeria, has started letting users trade cNGN, the country’s first regulated naira stablecoin. This makes Quidax the second exchange to offer cNGN for trading, following Busha, which added it last month.

For those new to this, a stablecoin is a digital currency tied to a real-world currency. In this case, cNGN is pegged to the Nigerian naira, meaning one cNGN equals one naira. The African Stablecoin Consortium (ASC), a group of tech companies, launched cNGN in February 2024 after years of planning. The consortium includes names like Convexity and Alpha Geek Technologies, all working under a joint venture called WrappedCBDC Ltd.

So why does this matter? Well, Nigeria’s government has been warming up to crypto lately. Instead of shutting it down, regulators like the SEC are finding ways to make it safer and more official. The SEC’s Regulatory Incubation programme gave cNGN the green light last August, letting exchanges like Quidax list it.

Now, users can send, receive, and trade cNGN on Quidax. This opens doors for cheaper payments, transfers, and even connecting Nigerian traders to global markets. Right now, about 127 people hold over 121 million cNGN tokens, a small but growing number.

The government’s shift toward crypto comes as Nigerians face challenges like a weak naira and limited access to banks. Many have turned to digital currencies for help, and regulators want to guide this growth instead of blocking it.

But exchanges can’t just list cNGN overnight. WrappedCBDC Ltd. checks if they can handle the stablecoin safely and charges a ₦100,000 fee to cover costs. This ensures the system stays stable.

The big idea behind cNGN is to make crypto easier for Nigerians. For example, sending money abroad using traditional methods or dollar-based stablecoins like USDC can be expensive. With cNGN, fees are much lower, think ₦150–₦500 (less than $1) for a transaction. It’s also designed to help platforms that stopped using the naira due to past rules.

Quidax, which started in 2018, is known for making crypto trading simple and secure. Adding cNGN fits its goal of expanding access to digital finance. But success depends on more people understanding and using the stablecoin. Experts say teaching small businesses and unbanked communities about cNGN could be key.

Nigeria’s experiment with cNGN is a bold step. It’s not yet clear if it’ll outshine other stablecoins or naira integrations, but its low fees and flexibility give it a strong chance. As the country keeps exploring blockchain tech, cNGN could become a game-changer, or at least a useful tool, for traders and everyday users.

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