By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has announced the formal engagement of a global Fintech company, Bitt Incorporated, as the technical partner for its digital currency, eNaira, which is due for unveiling later in the year.
According to a statement from the Director, Corporate Communications of the apex bank, Mr Osita Nwanisobi, the development was disclosed in Abuja by the Governor of the central bank, Mr Godwin Emefiele, as the country work towards joining other countries like the United Kingdom in operating a Central Bank Digital Currency (CBDC).
Mr Emefiele listed the benefits of CBDC to include increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, easier targeted social interventions.
He added that it will as well improve monetary policy effectiveness, payment systems efficiency and tax collection in Africa’s largest economy.
Known as Project Giant, as the Nigerian CBDC pilot has been a long and thorough process for the central bank, with its decision to digitize the Naira in 2017, following extensive research and explorations.
Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85 per cent of central banks are now considering adopting digital currencies in their countries.
According to the bank, it selected Bitt from among a number of highly competitive bidders because of the company’s technological competence, efficiency, platform security, interoperability and implementation experience.
In choosing the firm, the apex bank noted that it will rely on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean countries which kicked off with four islands – St. Lucia, Grenada, Antigua and Barbuda, and St. Kitts and Nevis.
It was stated that the chosen technical partner was key to the development and successful launch of the CBDC pilot of the Eastern Caribbean Central Bank (ECCB) in April 2021.
