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CBDC: CBN to launch a pilot scheme by October

CBN to launch a pilot scheme of its own digital currency by October 1st.

The Central Bank recently released a statement that it will be launching its digital currency before the end of the year. The information was revealed by Rakiya Mohammed, Director of Information Technology Department.

According to her, "Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme to be able to provide this kind of currency to the populace."

Now, it seems a date for the digital currency launch has been set as private sources claims the pilot scheme will be launched on October 1st.

The plan to launch a digital currency is gaining momentum, as the apex bank, along with its stakeholders, outlined its digital currency initiative via a private webinar held today.

The press briefing delivered by the Director IT department, Rakiya Mohammed, at the end of the meeting further explained that the Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of this year.

The project name is tagged Project GIANT, and it will use the Hyperledger Fabric Blockchain.

The use of cryptocurrency as a means of payment is becoming prevalent, and the growth of these currencies undermines the power of a Central Bank (effectiveness of monetary policy). Central Banks worldwide have responded by either banning the currency or looking to introduce a Central Bank Digital Currency (CBDC).

Several Central Banks have launched studies to examine the implications of a Central Bank Digital Currency to establish their digital currency. At the same time, some plan to launch a pilot scheme very soon. China has carried out several experiments on its digital currency, while a CBDC- Sand Dollars is already in use in the Bahamas.

Nigeria in focus

GDP: $432.294 billion in 2020 compared to $448.12 billion in 2019

Population: 206,139,587 in 2020 compared to 200,963,03 in 2019

GDP per capita: $2,097 in 2020 compared to $2,229 in 2019