Nigeria announces pilot CBDC launch

By the end of 2021 the Central Bank of Nigeria (CBN) could roll out a pilot project for a national digital currency (CBDC). This was stated by the regulator’s information technology specialist Rakiya Mohammed, according to Today NG.

According to her, the CBN has been examining the possibility of issuing a digital naira for more than two years.

“By the end of the year the central bank will issue a formal announcement and, perhaps, launch a pilot scheme to provide such a currency to the population,” said Mohammed.

The regulator’s representative added that a CBDC would complement cash. Officials say it could simplify and speed up transfers into Nigeria.

Authorities plan to study launch options for the digital currency and involve “various industry participants.”

Earlier in September 2020 the SEC of Nigeria equated cryptocurrencies to securities. In the same year the agency announced the development of a regulatory framework for digital assets and blockchain technology.

In February 2021 the CBN ordered commercial financial institutions to close the accounts of companies operating with cryptocurrencies. Later the Nigerian Senate demanded from the central bank governor Godwin Emefiele explain the introduced restrictions.

At the end of March, CBN spokesman Adamu Lamtek said that the regulator had not prohibited local residents from buying and selling Bitcoin, with the restrictions applying only to financial institutions.