The Central Bank of Nigeria (CBN) is set to unveil the much talked-about digital currency on October 1, 2021.
The bank’s director of information technology, Mrs. Rakiya Mohammed, disclosed this during a private webinar yesterday in which CBN and its stakeholders outlined a digital currency initiative.
She said the CBN had been conducting research towards the launch of digital currencies since 2017.
She added that the apex bank may conduct a proof of concept before the end of the year.
According to her, the project name is tagged ‘GIANT’ and it will use the Hyperledger Fabric blockchain.
The Hyperledger Fabric is an open source project that acts as a foundation for developing blockchain-based products, solutions, and applications using plug-and-play components that are aimed for use within private enterprises.
She said the importance of the 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.
If the pilot scheme is eventually launched, Nigeria will join other countries across the globe and Africa racing to develop its CBDC.
Some of these countries include South Africa (digital Rand), Tunisia (eDinar), Ghana (e-cedi), Sweden, Japan, South Korea, and Russia.
Recall that the move to adopt the electronic currency was first disclosed by the CBN Governor, Mr. Godwin Emefiele, during the Monetary Policy Committee (MPC) in May.
He had said a digital currency will soon become a reality in the country, adding that the central bank had already set up its committee which was working on the concept.
The CBN governor had further restated the determination of the apex bank to drive the e-Naira project during the recent 306th banker’s committee meeting pointing out that the process was ongoing.
