In a Monday press release, The Central Bank of Nigeria (CBN) has announced global fintech company Bitt Inc., as its technological partner for the launch of its digital currency, eNaira, which is expected to be launched in October 2021.
- According to governor Godwin Emefiele, the benefits of the CBDC include “increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, and tax collection.”
- The Nigerian CBDC pilot, also known as Project Giant, has undergone extensive research and explorations. The decision to launch its CBDC comes after the pop in digital currency for payments and an increase in the digital economy.
- Bitt Inc., a Barbados-based fintech firm, has been chosen for the project keeping in mind “the company’s technological competence, efficiency, platform security, interoperability, and implementation experience.”
- Bitt Inc. successfully launched the central bank digital currency (CBDC) pilot of the Eastern Caribbean Central Bank (ECCB) in April 2021. The CBN is also going to rely on the company’s “tested and proven digital currency experience.”
- The CBDC will have a non-interest-bearing status so that it doesn’t affect the country’s monetary policy. There will also be some value-based transaction limits for customers.