Following a ban on Nigeria banks and financial institutions from dealing in or facilitating transactions in cryptocurrencies in February, Nigeria has announced that it is partnering with Bitt. Inc. as the Technical Partner for the digital currency project.
Recall that we reported that the country’s Central Bank Governor, Godwin Emefiele, had first announced plans to launch the country’s crypto currency, called the “eNaira”, in October.
During the announcement, Emefiele said the “eNaira” would operate as a wallet against which customers can hold existing funds in their bank account.
Speaking in a statement made available to the public on Monday, the bank revealed that the proposed currency would accelerate financial inclusion and enable cheaper and faster remittance inflows.
While listing the benefits of the eNaira, the bank highlighted that it would lead to increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows and easier targeted social interventions.
The statement also added that it would also enhance improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.
According to the press release, the CBDC pilot project named Project Giant has been a long and thorough process for the CBN, with the Bank’s decision to digitize the Naira in 2017, following extensive research and explorations.
The statement also indicated that given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85 percent of the apex banks are considering a CBDC project.