Nigeria to launch national digital currency on Monday
After a delay of several weeks, the Central Bank of Nigeria is launching a digital currency that will complement the country’s physical currency.
What happened: The launch of the eNaira was originally scheduled for October 1-4, but was delayed due to the celebration of Nigeria’s 61st independence anniversary on October 1. The country’s digital currency rollout comes after Nigeria banned crypto transactions, including Bitcoin (CRYPTO: BTC), within the banking industry in February and four months later announced plans for eNaira.
Nigerian officials say the eNaira will complement the physical Naira, making “financial transactions easier and more transparent for all segments of society,” the CBN said in a statement on Saturday, according to a Bloomberg report.
Why is this important: The Central Bank of Nigeria has partnered with Bitt Inc, a Barbados-based fintech start-up, to create the digital currency. The company boasts of being the Caribbean’s leading authority on digital currencies. “The selection of Bitt Inc by the CBN, from among highly competitive bidders, was hinged on” technological competence, efficiency, platform security, interoperability and implementation experience, “said the central bank said in a statement.
The CBN released a document called âThe Design Paper for the E-nairaâ earlier this month. âAlthough the launch of the e-naira is an important event, it is a milestone on a long journey,â the newspaper read. âThe e-naira is a process, not a single step. Over time, CBN believes that the robust ecosystems that will be built on the e-naira platform will ensure Nigeria and Nigerians all the benefits of e-naira. “
The eNaira website says the digital currency will come with a CBN-sanctioned wallet. Users can either log into their bank accounts or choose a prepayment option.
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