CBN Announces Technical Partner As E-naira Commences October 1

GLOBAL Fintech Company, Bitt Inc. has been formally engaged by the Central Bank of Nigeria (CBN) as the technical partner for its digital currency, eNaira.

According to a statement by Osita Nwanisobi, Director, Corporate Communications of the Bank, on Monday, this development was disclosed in Abuja by the Central Bank Governor, Mr. Godwin Emefiele.

Emefiele said the apex bank’s selection of Bitt Inc. from among highly competitive bidders is hinged on the company’s technological competence, efficiency, platform security, interoperability and implementation experience.

He said, “In choosing Bitt Inc, the CBN relied on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries.

“Bitt Inc. was key to the development and successful launch of the central bank’s digital currency (CBDC), pilot of the Eastern Caribbean Central Bank (ECCB), in April 2021.”

Among benefits of the CBDC listed by Emefiele are: increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows.

Others include easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.

He added that the CBDC, known as “Project Giant”, had been a long and thorough process for the CBN, with the Bank’s decision to digitise the naira in 2017, following extensive research and explorations.

“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,” he said.

Prime Business Africa had reported when CBN announced in July that Nigeria would launch the pilot scheme of its digital currency by October 1, 2021.

Nigeria will be joining countries like South Africa, Tunisia, Ghana , Sweden, Japan, South Korea, and Russia in using digital currency.

Other countries that have officially launched their own national digital currency are China (digital yuan), Bahamas (sand dollar), Eastern Caribbean (DCash).

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