CBN to Launch Digital Currency on October 1st

According to the report by Nairametrics, indicates that the Central Bank of Nigeria (CBN) is to Launch its own digital currency on October 1, 2021.

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The announcement was made during a closed webinar on Thursday July 22, 2021 where the apex bank discussed its digital money effort.

Rakiya Mohammed, CBN director of information technology, revealed during the webinar with stakeholders that the apex bank had been undertaking research on building a digital currency since 2017.

The project called ‘GIANT’ will run on the hyper-ledger fabric block chain, an open-source project for developing block chain-based products, solutions, and applications used by private enterprises.

It will also give room for financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.

Recall that CBN’s Governor, Godwin Emefiele had announced that the bank was working on a digital currency during the 306th Banker’s Committee meeting.

CBN said the importance of its digital currency will include macro management and growth, cross border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.

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In February CBN announced the ban of cryptocurrency in Nigeria with the governor, Godwin Emefiele noting it was in the best interest of Nigerians and that “Cryptocurrency is not legitimate money” because it is not created or backed by any Central Bank.

It argued that cryptocurrency trading increased the risk of loss of investments, money laundering, terrorism financing, and other crimes.

Nigeria will join other countries across the globe and Africa racing to develop it’s CBDC. If the digital currency scheme is eventually launched.

African countries with officially recognized digital assets include South Africa with the digital Rand and Ghana’s e-cedi.