The Central Bank of Nigeria (CBN) will launch the Central Bank Digital Currency on October 1.
This was disclosed in a webinar by the director of Information Technology, CBN, Rukiya Mohammed.
Mohammed, in the webinar themed “Digital currency and the prospects of CBDC in Nigeria”, noted that the use of digital payment was rising while cash payment was declining both in Nigeria and globally.
She said that over 85 per cent of Central Banks worldwide were considering digital currency and so CBN was also innovative to cope with global trends.
“CBDC would contribute to macro-economic growth in the country, if people adopt more of the usage of the e-naira, it would enhance more data to formulate macroeconomic policies.
“Also, when more countries have their own digital currencies, it would increase the exchange of currency and be able to build cross border trade at a lower cost.
“Even though Nigeria has a good payment system, this would also improve Nigeria’s payments efficiency,“ she said.
She said the CBN has partnered with a lot of experts in digital currency technology providers such as MasterCard, came up with the design and would soon publish the design.
“CBN would focus on low amount payments at the introductory stage, instant settlement with low cost.
“CBDC would be legal tender with one e-naira equivalent to one naira which shows fundamental differences between CBDC and cryptocurrencies,” she said.