Nigeria is likely to have its own central bank digital currency (CBDC) by the end of the year, an official from the Central Bank of Nigeria (CBN) said. In his remarks after the bankers’ committee meeting, Rakia Mohamed, who is the director of information technology at CBN, also revealed that this “digital currency will be accessible to all Nigerians.”
However, according to a report good Joe quotes the IT director, CBN’s digital currency will be unlike privately issued cryptocurrencies like bitcoin, which the Nigerian senator has previously blamed for making the naira currency “virtually worthless”. Emphasizing the importance of this digital currency initiative, Mohamed said:
We have spent over two years studying this concept of a central bank digital currency and we have identified the risks. And this is one of the reasons why I said that we are setting up a central governance structure that will involve all industry stakeholders to access all risks as we continue this journey.
The director said that “very soon” CBN will announce the launch date of the CBDC.
CBN’s Digital Currency Drive
Meanwhile, with these latest comments, Mohamed became the second CBN official to suggest a digital currency roll-out is in the works. In May 2021, CBN Governor Godwin Amphile said The digital currency will “come to life in Nigeria as well.”
Coincidentally, the digital currency comments from both Mohamed and Amifil come a few months after CBN. ordered Banks to stop expanding their services to cryptocurrency entities. Nigerian authorities blamed cryptocurrency exchanges and start-ups for bridging foreign exchange shortages and depreciating naira on the black market.
Meanwhile, with only six months left for the year to end, it remains to be seen whether the promises of the digital currency are going to be fulfilled.
What do you think about this latest digital currency comment by a CBN official? You can share your thoughts in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.