Cryptocurrency News

Nigeria’s central bank is planning a CBDC pilot launch before the end of 2021

Rakia Mohamed, an IT specialist at the Central Bank of Nigeria (CBN), has announced that the apex bank is making efforts to issue a central bank digital currency in the country.

according to a report good By the People’s Gazette, Mohamed told reporters after a meeting of the Bankers’ Committee held in Abuja on Thursday:

“Before the end of the year, the Central Bank will make a special announcement and possibly launch a pilot scheme to be able to offer such currency to the public.”

In early May, CBN governor Godwin Amephile said that digital currencies would “come to life” in Nigeria despite the current ban.

Indeed, the central bank of Nigeria banned commercial banks and other financial institutions Servicing crypto exchanges Citing the rejected claims of cryptocurrencies being used primarily for illegal transactions in February.

According to Mohamed, CBN’s digital currency Naira will act as a complement to cash notes. The IT expert also said that the planned digital currency will be used to ease foreign exchange restrictions in the country.

As previously reported by Cointelegraph, CBN had foreign exchange sanctions policies under its “naira defense” policy. What triggered increased crypto adoption in Nigeria In the lead-up to the February ban.

Foreign remittance transfers account for the largest non-oil foreign exchange revenue in Nigeria, with millions of expatriate populations repatriating family members living abroad. World Bank figures show $26.4 billion In such payments flowing into the country in 2019.

related: Crypto will ‘come to life’ in Nigeria, says central bank governor

Mohamed revealed that CBN has been exploring the potential of a central bank digital currency for almost two years. The CBN executive said that the apex bank is ready to go ahead with developing a proof of concept for conducting pilot trials for the scheme.

Nigeria’s CBDC plan comes after a similar announcement from neighboring Ghana. Earlier in June, Cointelegraph announced that the central bank of Ghana was stepping up Be the first in Africa to launch a CBDC.