CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Central Bank of Nigeria announces digital currency partner

By Aaron Woolner

05:38, 31 August 2021

Nigerian naira currency symbol on a digital background
Photo: Shutterstock

Nigeria’s central bank has made fintech firm Bitt its technical partner for the eNaira digital currency, which is due to be launched in October 2021.

The Central Bank of Nigeria (CBN) is pursuing a central bank digital currency (CBDC) for a number of reasons, according to its governor Godwin Emefiele. 

These include increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection. 

Giant ambitions

According to a statement from the central bank, the CBN greenlit Project Giant, as its CBDC pilot is known, in 2017 since when the digital currency sector has expanded rapidly. 

“Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85% of Central Banks are now considering adopting digital currencies in their countries," the statement added. 

The CBN’s selection of Bitt, from among highly competitive bidders, was hinged on the company’s technological competence, efficiency, platform security, interoperability, and implementation experience,” it added. 

BTC/USD

64,593.65 Price
+1.620% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,101.04 Price
+0.940% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.51 Price
-0.360% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.15 Price
+0.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

The e-Naira is a legal tender for the entire country and the CBDC will be non-interest bearing – considered key for ensuring digital currencies do not impact monetary policy. There will also be a transaction limit for customers, and a value-based transaction limit, according to the local news site, Nairametrics.

What is your sentiment on BTC/USD?

64593.65
Bullish
or
Bearish
Vote to see Traders sentiment!

The pilot of the Caribbean

Barbados-based Bitt already has experience in providing technical services for CBDCs. In 2019, it was tasked by the Eastern Caribbean Central Bank (ECCB) to conduct a blockchain-issued central bank digital currency (CBDC) pilot within the Eastern Caribbean Currency Union (ECCU).

This pilot was successful and in April, the ECCB launched the CBDC, otherwise known as DCash,  the first such project to get off the ground in a currency union, according to Bitt’s website. 

Speaking at the currencies virtual launch of the Caribbean, Bitt’s chief executive Brian Popelka, said, “CBDCs are truly transforming the way that financial transactions are conducted around the world. This change brings significant benefits, especially to emerging economies. DCash is a game-changer for the people of the Eastern Caribbean.”

Trade Bitcoin Cash to US Dollar - BCH/USD CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: Thailand to pilot digital currency for consumers next year

 

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading