Central Bank Digital Currency (CBDC)Cryptocurrency News

The Pilot for CBDC in Nigeria is set to Take Off by the End of 2021

Now that countries from all over the world are moving towards CBDC adoption, Nigeria does not want to get left behind in this particular space. The country is also getting ready to test its central bank digital currency (CBDC) before it can start offering commercially.

The regulatory authority of the country is aiming to launch the CBDC at the earliest but before that, it wants to carry out a pilot for it. The regulator is aiming to make it risk-free and without any flaws, before it is made commercial.

Therefore, the Central Bank of Nigeria has confirmed that it is currently working with Apex bank to roll out the digital currency. On behalf of the Central Bank of Nigeria (CBN), the person leading the CBDC project is Rakya Mohammed.

Rakiya Mohammed is reportedly the IT specialist and head of the department at the Central Bank of Nigeria (CBN). The Apex Bank has confirmed it is currently working with the Central Bank of Nigeria (CBN) for the CBDC project.

Both banks will be collaborating in order to offer and float the digital currency to their users. The bank would be rolling out the CBDC among its most loyal and trusted clients in order to make sure the CBDC is used and well-documented.

The banks will be collecting useful data surrounding the CBDC and find any flaws pertaining to the digital asset. Based on the findings, the banks will decide whether it is ready for launch or more work needs to be done before the commercial release.

The details have been shared and communicated by Rakya Mohammed after the Bankers Committee meeting. The particular meeting was reportedly held on Thursday, June 10 in Abuja.

While providing a briefing on the CBDC, Mohammed confirmed that they are planning to launch the pilot for the CBDC by the end of 2021. He confirmed that they will be making an official announcement towards the end of the year.

Mohammed revealed that they will be sharing more details about the pilot in the announcement later in the year. Their aim is to roll out digital currency to as many users as possible.

However, the central bank’s digital currency is not the only thing that the Central Bank of Nigeria is aiming to launch. It was also announced by Godwin Emefiele, the governor at the Central Bank of Nigeria (CBN), who made positive remarks on cryptocurrencies.

Back in May, CBN governor Godwin Emefiele had stated that digital currencies will “come to life” in Nigeria despite the current ban. One of the hottest topics in the month of February 2021 in the crypto-ban was the sudden banning of cryptocurrencies by the CBN.

Despite the heavy resistance demonstrated by the crypto-community and even the Nigerian Congress, the CBN stood its ground. However, Godwin Emefiele clarified that the cryptocurrency industry is not facing a permanent ban but a temporary one until firm regulatory guidelines are introduced.

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