The Central Bank of Nigeria (CBN) is making progress on the development of its central bank digital currency (CBDC), the eNaira; nevertheless, the CBN is seeking assistance this time around.
The Central Bank of Nigeria (CBN) is reportedly in discussions with new “technology partners” to establish a new and better system to administer the eNaira, as stated in a story published by Bloomberg on February 21.
According to people with direct knowledge of the situation, the Nigerian financial authority has reportedly discussed these intentions with the technology company R3, which is situated in New York.
The CBN will have full control over the effort thanks to new software that will be developed for the eNaria; nevertheless, the source who did not want to be identified said that the information on this topic is private.
In 2021, with the assistance of the financial software business Bitt, efforts were initiated to establish a digital currency known as the eNaira. According to the article, the new partner will not instantly take over Bitt’s function but would assist phase in absolute responsibility for the Nigerian central bank. This will take place over the course of many years.
Bitt has acknowledged, in a statement, that it is cognizant of the fact that the CBN collaborates with a variety of partners on its technical advancements. It affirmed that it continues to maintain strong collaboration with the CBN and that it is “actively developing further features and upgrades.”
Despite the fact that Nigeria was one of the first nations to introduce a CBDC, the country’s digital currency, the eNaira, got off to a slow start, and adoption was minimal. Only 0.5 percent of Nigerians are reportedly utilizing the CBDC, which leads some to conclude that the grandiose initiative has been “crippled.”
In January, a Nigerian entrepreneur became the first person in the nation to create an operational Bitcoin Lightning node. Not long before that, the government made public its intention to develop a regulatory infrastructure for stablecoins as well as initial coin offers (ICOs).
Nigeria is one of over 90 nations across the world that is investigating the usage of CBDCs. Among the others are Russia and Japan, both of which are making preparations to launch their own currencies before to the summer. Additionally, the city of San Francisco is investigating the potential for the establishment of a CBDC system.
However, CBDCs are facing opposition from activists who refer to them as “surveillance instruments.” This opposition is now being actively pursued.