As the world takes on the digitalization wave, Nigeria revealed that it was getting on the journey.
Central bank digital currency [CBDC] rose to fame after China took a plunge into developing a digital version of its fiat currency. While China is way ahead in the game, several other governments have started to catch up. The Chinese government has moved past its research and development phase and has already kick-started its distribution stage. Alerted by this rapid development, other countries have begun developing their own digital assets.
Nigeria hoped on to the bandwagon and even went on to announce the launch of its forthcoming CBDC pilot scheme.
Nigeria takes a leap into digitalization
In a recent webinar, the Central Bank of Nigeria [CBN] pointed out that it would roll out the pilot program for the region’s CBDC project, ‘”GIANT,” on 1 October 2021.
The project was reportedly in the works since 2017 and operated on an open-source blockchain called Hyperledger Fabric. This project has been focusing on the development of blockchain-based solutions, applications as well as products.
Rakiya Mohammed, the information technology director for the Nigerian central bank that Nigeria took this plunge into the CBDC game as 80 percent of central banks across the globe were on the verge of launching or developing a CBDC. Nigeria did not want to lag or be left behind in this move towards digitalization, the bank noted.
In addition to this, the central bank hopes to garner macro-management as well as growth. Easing the process of cross-bored trading is also an added advantage.
While the country continues to embrace the CBDC side, recent comments from the government about cryptocurrencies have led to people thinking that it is anti-crypto. Despite this, crypto is being widely used across several industries in the region. Most recently a school in the country revealed that it would accept crypto for tuition fees.