June 11, (THEWILL)- The Central Bank of Nigeria (CBN) says it will launch its own digital currency before the end of 2021.
Digital currency is a form of currency that is available only in electronic form. Cryptocurrencies such as Bitcoin and Ethereum are digital currencies.
Speaking with journalists at the end of the virtual Bankers’ Committee meeting on Thursday, CBN Director, Information Technology, Rakiya Mohammed, said the apex bank has been exploring the technology for over two years and has made tremendous progress.
According to Mohammed, the apex bank plans to come up with a digital currency to make remittances travel easier from abroad to Nigeria.
She said the digital currency would accelerate the ability to meet the target, regardless of one’s country of residence.
Mohammed noted that the apex bank would be exploring various technological options and engaging various industry players, and moving to the next stage of proof of concept to pilot the scheme.
She said the CBN considered the architecture, accessibility issue and privacy of the currency before embarking on the venture.
The Central Bank Director said: “The digital currency would be accessible to all Nigerians. Just like everybody has access to cash, everybody will have access to the central bank’s digital currency. Let me state categorically that cryptocurrency such as Bitcoin and the rest of them are not under the control of the central bank; they are purely private decisions that individuals make.
“We have spent over two years studying this concept of central bank’s digital currency and we have identified the risks. And it is one of the reasons why I said we are setting up a central governance structure that would involve all industry stakeholders to access all the risks as we continue on this journey.
“Very soon we would make an announcement on the date for the launch and by the end of the year we should have the digital currency.”
In February, the apex bank issued a directive to banks to close accounts of persons or entities involved in cryptocurrency transactions.
It warned that cryptocurrencies pose the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.
On Wednesday, El Salvador, a country in Central America, officially recognised Bitcoin as a form of legal tender to “drive financial inclusion.”
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