Nigeria prepares for a pilot CBDC launch in October after four years of research as reported in our cryptocurrency news.
The Central Bank of Nigeria will roll out a new pilot program for its own digital currency on October 1st this year and the CBDC project named “GIANT” will run on the modular blockchain framework Hyperledger Fabric. Nigeria prepares for the pilot launch as it doesn’t want to fall behind other countries. During a recent webinar, the Central Bank of Nigeria revealed that it has a set date for launching a pilot for its CBDC, and the information technology director of the CBN Rakiya Mohammed, outlined the move as the institution spent four years researching and developing the project.
The pilot program will come under the name “GIANT” and will run on permissioned blockchain infrastructure Hyperledger Fabric and Mohammed also noted that the CBN could administer a proof of concept before the end of 2021. The top bankers of Nigeria reminded during the webinar that around 80% of the central banks across the world are attempting to issue their own CBDC.
With the help of the future project, Nigeria hopes to focus on growing regional problems like monetary policy effectiveness, revenue tax collection and improved payment efficiency, remittance improvement, social intervention, and financial inclusion. Furthermore, the CBN pointed out that an e-naira will enable cross-border trade facilitation. Nigeria is one of the numbers one crypto markets in Africa and millions of the residents in the nation use digital assets in an attempt to solve their financial problems.
The CBN imposed restrictions on trading with crypto uring local banks to stop servicing BTC clients. The institution explained that most criminal organizations use the asset to facilitate money laundering and even finance terrorism. A few weeks later, the central bank changed its stance and announced it is okay with crypto and doesn’t encourage people from trading with them. While many expected the hurdle will threaten and reduce the size o the market, no such thing happened. Nigerians continued remaining bullish and the country emerged as the biggest P2P market for Paxful amid the CBN prohibition. Nigeria prepares for pilot CBDC launch and over 1.5 million local platform users hit a remarkable trading volume of $1.5 billion.
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