The Central Bank of Nigeria (CBN) was in the headlines for most of 2021 due to its measures against cryptocurrencies. Yet this week, the institution doubled its investment and research into the core technology of crypto, the blockchain, and set a clear date for a pilot program for its blockchain-powered digital currency (CBDC) digital currency.
GIANT pilot project
On October 1, CBN will reportedly launch a pilot scheme for “GIANT” – a CBDC project developed since 2017, which runs on the open-source blockchain Hyperledger Fabric.
Rakiya Mohammed, CBN’s chief information officer, said the bank could carry out a concept review by the end of 2021. world has advanced its own research and development of the CBDC.
Themes for CBDC
Among the motives cited for this project, CBN stated that the CBDC would be beneficial for managing macroeconomics and growth, promoting cross-border trade and financial inclusion.
In CBN’s view, the potential benefits could be further extended, from greater efficiency in payments and transfers, better monetary policy transmission, better tax collection and the facilitation of targeted social policies.
In addition to CBN, the Bank of Ghana was rapidly moving towards the pilot phase of the central bank’s own digital currency this summer. The country is at the forefront of CBDC development on the continent and considers digital currencies issued by the central bank to be superior and less risky than decentralized cryptocurrencies.
However, Ghana’s vigilance against cryptocurrencies is overshadowed by Nigeria’s more aggressive measures, which, among other things, have banned commercial banks and other financial institutions from operating cryptocurrency exchanges. Despite this, the acceptance of BTC and peer-to-peer trades with BTC remained high in the country.
CBDC is spreading very fast. And it seems that every country has similar motives for its introduction. What do you think? Will the digital crown be introduced here as well? Or do you have a different opinion on this trend? Write it to us in the comment.