Last updated on September 3rd, 2021 at 12:51 pm
Ahead of the proposed launch of the digital currency, e-Naira, the Central Bank of Nigeria (CBN) has engaged Bitt Inc, a global fintech company, as the technical partner.
Bitt is a Barbados-based startup that led the development of the Eastern Caribbean Currency Union’s “DCash” — the first digital cash issued by a currency union central bank, THISDAY reports
This disclosure was made known on Monday by Godwin Emefiele, the CBN governor.
According to him, the benefits of the Central Bank Digital Currency (CBDC) will ensure increased cross-border trade, accelerated financial inclusion, as well as cheaper, and faster remittances.
Others are easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.
The CBN had earlier announced that it will launch the pilot scheme of eNaira by October 1, 2021.
Osita Nwanisobi, the spokesperson of the apex bank explained that the selection of Bitt Inc. from among highly competitive bidders was hinged on the company’s technological competence, efficiency, platform security, interoperability, and implementation experience.
“In choosing Bitt Inc, the CBN will rely on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries,” the statement reads.
“Bitt Inc. was key to the development and successful launch of the central bank digital currency (CBDC) pilot of the Eastern Caribbean Central Bank (ECCB) in April 202I.”
Nwanisobi said following the CBN’s decision to digitize the naira in 2017, Project Giant, as the Nigerian CBDC pilot is known, has been a long and thorough process for the apex bank.
He added that the CBN’s decision followed an unmistakable global trend in which over 85 percent of central banks are now considering adopting digital currencies in their countries.
He attributed the global adoption of digital currencies to the significant explosion in digital payments and the rise in the digital economy.
Earlier this year, the CBN directed banks to close accounts of persons or entities involved in cryptocurrency transactions, warning that digital currencies pose the risk of loss of investments, money laundering, terrorism financing, illicit fund flows, and other criminal activities.
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