(REUTERS): Nigeria may launch a central bank digital currency (CBDC) by the end of 2021, its director of information technology said in an online press briefing.
Speaking at an online news briefing, Rakiya Mohammed, an information technology specialist at the Central Bank of Nigeria (CBN), said that the entity had been exploring a possible CBDC for over two years.
“We’re all aware that about 80% of central banks in the world exploring the possibility of issuing central bank digital currency, and Nigeria cannot be left behind,” Mohammed said.
She said the system would expand digital inclusion, make remittances from the diaspora easier and smooth international purchases for Nigerians. “If you have a central bank digital currency that is backed by the government, then people can make transactions online without fear of any default,” Mohammed said.
“Before the end of the year, the central bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” Mohammed added.
Nigeria barred its banks and financial institutions from dealing in or facilitating transactions in cryptocurrencies in February after exponential growth in monthly cryptocurrency transfers to and from Africa.
Europe and the United States are working on regulating digital assets and their providers, while some other countries, including China, Britain and Russia, are also considering launching their own central bank digital currencies.
