Nigeria to pilot digital currency on October 1

Nigeria to pilot digital currency on October 1

Nigeria’s Central Bank, has announced it will launch the pilot scheme of its digital currency by October 1, 2021.

This announcement was made on Thursday during a webinar by Rakiya Mohammed, the Central Bank of Nigeria’s information technology director as he presented the bank’s digital currency initiative to stakeholders. The bank has been researching on the project since 2017 to develop and adopt the digital currency.

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

A proof of concept may be conducted before the end of this year by the Central Bank of Nigeria (CBN), Mohammed disclosed.

Mohammed further disclosed that about 80 per cent of the world’s central banks were presently exploring the possibility of issuing “central bank digital currency” (CBDC), and Nigeria could not be left behind.

According to the bank, the digital currency’s launch would include and allow macro-management and growth and cross-border trade facilitation.

The currency will also provide for financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.

Author: Greg