Two sources familiar with the matter say the central bank is willing to develop its own software for the CBDC to keep it in full control of the effort.
It has been almost 18 months since Nigeria launched its Central Bank Digital Currency (CBDC) eNaira in October 2021. Currently, the Central Bank of Nigeria is planned For CBDC technology innovation.
The Central Bank of Nigeria is currently in talks with technology partners who could potentially develop a system to run and manage a CBDC. Two of his sources familiar with the matter say the central bank is willing to develop its own software for the CBDC to keep it in full control of the effort.
One of the sources also said the central bank is in early-stage talks with New York-based tech firm R3. Bitt Inc. initially helped Nigeria issue a central bank digital currency, becoming the first country on the African continent to implement her CBDC.
According to sources, the new partners are not trying to take jobs away from Bitt Inc., but help the central bank achieve its goal of controlling CBDC technology. Commenting on the development, Bitt Inc. said, “We are aware that our partner CBN is working with his providers of various services to explore innovations in digital infrastructure.” increase. The company further said it is working closely with the Central Bank of Nigeria to develop “additional features and enhancements.”
Nigeria struggles to boost adoption of eNaira CBDC
Nigeria has been at the forefront of initiatives to support a blockchain-based version of its currency, but has struggled to drive widespread adoption of its CBDC e-Naira. Currently in Nigeria, only her one million people out of a total population of 200 million have downloaded a digital wallet to store eNaira.
The Central Bank of Nigeria itself has said eNaira’s trading volume is negligible. Now, with e-Naira’s redesign and its cashless policy introduced four months ago, regulators are looking to boost his CBDC adoption.
Nigeria has recently faced serious economic challenges in its central bank efforts to transition to a cashless economy. The move by the Central Bank of Nigeria to get rid of high denomination banknotes to clean up excess cash has actually backfired as individuals and small businesses face the toughest of circumstances.
Critics of the CBDC have expressed concerns that the CBDC could destabilize the commercial ban, excluding consumers and businesses still dependent on cash.
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Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.