NIGERIA: The Central Bank of Nigeria (CBN) has concluded to kick start the usage of Central Bank Digital Currency also known as e-currency from October first this year.
This was disclosed by the Director of Information Technology, Rukiya Mohammed in a webinar titled “Digital currency and the prospects of Central Bank Digital Currency in Nigeria”, organized by the Committee of e-Business Industry Heads Nigeria (CeBIH).
Mohammed said the usage of digital remittance is increasing drastically as paper payment is likewise reducing both in Nigeria and in advanced countries.
“More than 85 per cent of Central Banks across the world have started selecting digital currency as an option and as such CBN has also inspired considerations as the trends advances,” Mohammed added.
The Central Bank Digital Currency, if accepted, will help in bursting the macroeconomy and improve data to put together its plans when people accept its usage.
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Mohammed also said that, as other nations established their digital currencies, it will serve as an addition to an exchange of currency and be able to build cross border trade at a lower cost.
CBN has already signed partnership deals with many professional bodies in the aspect of digital currency technology providers like MasterCard to present a blueprint for the establishment.
“CBN would focus on low amount payments at the beginning of its introduction, instant settlement with little cost”, Mohammed said.
However, the Central Bank Digital Currency would be sensitive as one e-Naira is equivalent to one Naira which shows fundamental differences between CBDC and cryptocurrencies,” Mohammed added.
The Managing Director, First Bank Nigeria, Dr Adesola Adedutan, while speaking said that the CBN’s CBDC is a welcome idea that is capable of providing other payment options and would modify the payment system.
According to Adedutan, who was represented by the First Bank Deputy Chief Executive, Mr Francis Soba, CBDC provides a way for the government to influence blockchain technology to maintain a centralised and institutional role over the currency.
