CBN digital currency: According to E-Nigeria Newspaper findings the Central Bank of Nigeria (CBN) is planning to introduce its own digital currency.
According to insiders, the central bank has finalized preparations to introduce a digital currency that would serve as a successor for other digital currencies in the crypto class.
Rakiya Mohammed, the CBN’s Director of IT, acknowledged the news during a recent press briefing, explaining that the apex bank has been studying the digital currency landscape since 2017, and is confident that digital currencies would help it fulfill its goals as the nation’s central bank.
Project GIANT, the Apex bank’s digital currency venture that will run on Hyperledger Fabric Block chain, is slated for official launch on October 1, 2021. (Independence day),
According to a definition obtained by E-Nigeria Newspaper, digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include crypto currency, virtual currency and central bank digital currency.
The Central Bank of Nigeria announced the prohibition on crypto currency transactions in a circular to Nigerian banks and other financial institutions on February 5, 2021.
The CBN also ordered all banks and other financial institutions to identify and terminate the accounts of anyone who transacts in crypto currency or runs crypto currency exchanges.
The Nigerian people had mixed reactions to the CBN letter, with many expressing concern about the possible detrimental impact it could have on the country’s burgeoning crypto currency sector and financial technology innovation.
Meanwhile the CBN digital currency initiative has received commendations from many quarters and has been described as a step in the right direction.