The deputy governor of the Central Bank of Nigeria (CBN) has commented on the country’s CBDC which is under development.
According to the DG, Folashodun Shonubi, the digital currency that will be issued by the Central Bank will be safer than ‘privately issued cryptocurrencies.’
The DG added that the CBDC is expected to complement available payment options and he believes this will ensure the stability of the payment system in the long run.
On August 30 2021, it was revealed that Bitt, a fintech company based in Barbados has won a contract to deliver e-naira for the Central Bank of Nigeria. This also revealed the similarities the Nigerian CBDC would have with Dcash, a CBDC that Bitt has already developed for use in countries that make the East Caribbean Currency Union.
Bitt would bring expertise in developing a wallet to facilitate payments. The following are some of the services that Nigeria can expect from the e-wallet that will come with the CBDC:
- Manage funds
- Make purchases
- Pay bills
- Availability on App Stores
The DG also pointed out the following advantage that users can expect from the CBDC:
“The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.”
– ‘Deputy Governor
The DG who indicated that the CBDC has more opportunities than risks also attributed the following benefits to CBDCs:
- Enhance liquidity for developing countries
- Efficiency in national remittances
- Address the high cost of remittances
The e-naira which is scheduled for a pilot at the start of October 2021 will be different from digital currencies which have been mainly used for investment.
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