Nigeria to pilot central bank digital currency in October

For a lot of 2021, the Central Financial institution of Nigeria (CBN) has been within the headlines for its anti-cryptocurrency measures. But, the establishment has this week redoubled its funding and analysis into crypto’s underlying expertise, blockchain, and has set a transparent date for the pilot scheme of its blockchain-powered central financial institution digital foreign money (CBDC).

On October 1, CBN will reportedly launch a pilot scheme for “GIANT” – a CBDC mission in improvement since 2017, which runs on the open-source blockchain Hyperledger Cloth.

Rakiya Mohammed, CBN’s data expertise director, mentioned the financial institution would possibly conduct a proof-of-concept earlier than the top of 2021. In a webinar this week with stakeholders, CBN representatives reportedly emphasised that the establishment couldn’t afford to be left behind whereas the overwhelming majority of central banks worldwide make headway with their very own CBDC analysis and improvement.

Among the many motivations cited for the mission, CBN has famous {that a} CBDC can be helpful for macro and development administration, cross-border commerce help, and monetary inclusion.

Potential advantages may nonetheless prolong additional, in CBN’s view, starting from increased effectivity for funds and remittances, higher financial coverage transmission, improved tax income assortment, and the facilitation of focused social insurance policies.

Associated: Nigeria’s comms minister hyperlinks blockchain to nationwide digital innovation efforts

Alongside CBN, the Financial institution of Ghana has this summer time been shifting quickly in the direction of the pilot stage for its personal central financial institution digital foreign money. The nation has positioned itself as a pioneer in CBDC improvement on the continent and considers central bank-issued digital currencies to be superior to and fewer dangerous than decentralized cryptocurrencies.

Nevertheless, Ghana’s wariness of crypto is overshadowed by Nigeria’s extra aggressive measures, which embrace a ban on industrial banks and different monetary establishments from servicing crypto exchanges. Regardless of this, Bitcoin adoption and BTC peer-to-peer trades have remained excessive within the nation.