Nigeria is commencing plans for CBDC

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Countries around the world are increasingly exploring the prospect of creating a Central Bank Digital Currency (CBDC). Different from investing in cryptoassets, a digital currency would share similar features to a stablecoin, with the added characteristic of centralisation, whereas most other cryptocurrencies operate with a strong degree of decentralisation. If you were to buy Tether (USDT), a popular stablecoin, you would own a ‘crypto-to-fiat’ coin that’s pegged to the price of $1.

Nigeria is another country considering creating a cashless payment economy to progress in an increasingly digitalised world. The Central Bank of Nigeria (CBN), has publicly announced the partnership between global financial technology firm Bitt Inc. The announcement confirmed, the central banks plan to partner with Bitt Inc to build the countries CBDC, the eNaira. The CBN stated that the fintech company has technical and security competency, logistical and implementational expertise and more credentials to assure a swift execution of any CBDC project.

Another consideration that assisted Nigerian lawmakers’ decision is the track record of partners Bitt Inc, siting their execution of A CBDC for the Eastern Caribbean. The Central Bank of Nigeria released the announcement as well as their predetermined guidelines for its CBDC. The central bank has dubbed the project “Project giant” and the CBDC’s price will be pegged to the value of the Nigerian Naira, with hope that the CBDC will be established before the end of 2021.

Further from the Nigerian CBDC plans, CBN has recently made bans on cryptocurrency services through commercial banks within the country. 

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