Nigeria’s Central Bank (CBN) has declared that the trial project for its digital currency would begin on October 1, 2021. The CBN announced this on a Thursday webinar when it outlined its digital currency program to stakeholders.
Rakiya Mohammed, the bank’s information technology director, revealed that the CBN has been investigating the development and use of digital currency since 2017. Mohammed further added that the bank may execute a proof of concept by the end of the year.
The project named ‘GIANT’ will be built on the hyper-ledger fabric blockchain, an open-source initiative for building blockchain-based goods, solutions, and applications for private companies. The implementation of the digital currency would incorporate and enable macro-management, development, and cross-border trade facilitation.
The statement by the CNB comes after institutions all around the world expressed interest in implementing digital asset trading. According to the CBN, over 80% of central banks globally are now considering issuing CBDC, and Nigeria cannot be left behind, as reported by Peoples Gazette.
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However, despite being the world’s second-largest bitcoin trading market, Nigeria outlawed cryptocurrency trading in February, instructing banks and other financial institutions to cancel client accounts connected to digital asset trading. Nevertheless, CNB who earlier believed that bitcoin trading raised the danger of investment loss, money laundering, terrorism financing, and other criminal activity have change of heart towards digital currency now.
Steve Hanke, who previously targeted El Salvador crypto adoption plan, recently stated, If Nigeria’s digital currency ambitions are anything like El Salvador’s Bitcoin scheme, they will fail. Rather than experimenting with crazy ideas, Nigeria should establish a USD-denominated Currency Board, similar to the one it had from 1913 to 1959.
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