CBN’s digital currency is slated to begin before 2022
The director of the Information Technology Department of the Central Bank of Nigeria (CBN), Ms. Rakiyat Mohammed, told the Bankers Committee meeting yesterday that the CBN will adopt a central bank digital currency (CBDC) before the end of 2021.
She noticed “As I said before, the central bank will make a special announcement before the end of the year and possibly start a pilot program to provide this type of currency to its people.”
The director mentioned the fact that about 80% of the world’s central banks are exploring the possibility of issuing central bank digital currency and Nigeria cannot be left behind. She also mentioned that the CBN has been researching technology and making tremendous strides over 2 years so far.
The director explained what Nigeria’s digital currency would look like, explaining that there are currently two forms of money in the country. She noticed “We currently have two currencies in Nigeria, there are the banknotes and there are the coins. So the central bank currency is said to be the third form of money, which means that digital money, just like we have electronic money, is not new to Nigeria. Just like we’re about third or fifth in the world in terms of advancement in the use of digital money. So this will complement the coins and cash that we have. The central bank digital currency will be just as good as you have cash in your pocket, and even if you have the cash in your pocket, you will have the cash on your phone. “
The director mentioned that Apex bank was looking into various use cases like wire transfers. On the subject she said: “We all know how money has to travel in order for someone to send money abroad from Nigeria, and in Africa it’s huge money. We also know that in a recent report from EfiNA, our goal was to achieve 80% financial inclusion. We are at around 60 percent and will not achieve this goal at the targeted speed. The central bank’s digital currency will accelerate our ability to achieve this goal. “
Effects of a Nigerian digital currency
The CBN, which is looking to create a digital currency, will help promote Apex Bank’s cashless policy, although the nation’s high level of illiteracy could hinder the mass adoption of CBDC in the country. The Apex bank should also be ready to go through awareness programs to ensure that the CBDC can work for all classes of Nigerians.