The Central Bank of Nigeria (CBN), the nation’s central bank and the sole authority on monetary policy and other financial matters, has announced that it is launching a “Central Bank Digital Currency” (CBDC), according to a report by News Agency, Intersport, today.
Central Bank Digital Currency is the next step in the evolution of money and the first digital currency to ever be issued by a central bank. CBDC is a digital version of central bank money that is fully backed by assets held by the bank. This unique feature allows central banks to easily and directly adapt to the ever-changing technological needs of the digital economy while preserving the financial system’s stability.
Central Bank Digital currency is a new form of digital currency that is a digital representation of money issued and controlled by a central bank. The Reserve Bank of New Zealand announced last week it would start experimenting with a central bank digital currency, or CBDC, which could begin being issued as early as next year.
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- The Central Bank of Nigeria (CBN) has announced the launch of a digital currency.
- Nigeria is one of the nations that has yet to embrace the cryptocurrency revolution.
- The experimental program was dubbed “GIANT” by CBDC.
The Central Bank of Nigeria (CBN) announced the introduction of a long-awaited digital currency on Thursday. Mrs. Rakiya Mohammad, CBN Director, IT Department, stated during a private webinar that the Central Bank Digital Currency (CBDC) would be released on October 1.
Furthermore, according to the private webinar, the financial sector regulator has been studying the introduction of cryptocurrencies since 2017.
Nigeria is one of the few nations that has resisted the crypto revolution. However, they are the first to introduce their own digital money issued by the central bank. Furthermore, the bank has already committed a significant amount of resources to keep the initiatives on track for the October 1st launch date.
Henceforth, the CBDC’s debut will be referred to as the “GIANT” pilot program. Since 2017, this has been in the works for a long time.
As a result, the director of the Nigerian central bank said that they could not stay behind while big organizations and banks worldwide study crypto. Nigeria’s pilot initiative also ensures that they will not be left behind in the same way. Furthermore, the bank believes that the establishment of the CBDC would aid in tax efficiency, monetary policy ease, and revenue collection games, among other things. The CBN move comes as governments across the world expressed interest in embracing cryptocurrency trading.
Other central banks across the world are continuing to conduct CBDC research and trials. CBDC has the potential to become a stable currency similar to the ones we trade now, allowing Bitcoin and other excellent cryptocurrencies to achieve their full potential.
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