Nigeria’s digital currency to be officially launched on October 1, 2021
Nigeria’s digital currency initiative will benefit from a partnership with fintech firm Bitt, the country’s central bank announced on Monday.
According to a press release, Barbados-based Bitt will provide technical support as the Central Bank of Nigeria (CBN) finalizes the launch of the nation’s digital currency, called the “eNaira.”
The central bank said it selected Bitt as a partner because of the company’s strengths, including its “technological expertise, efficiency [and] platform security.”
The bank also considered the Barbados company’s prior experience with a similar project launched earlier this year in the Eastern Caribbean.
Choosing Bitt follows an earlier announcement that the eNaira would be launched on October 1. The banking regulator has also issued warnings to banks and other financial institutions about Bitcoin and other cryptocurrencies.
Commenting on the announcement, CBN Governor Godwin Emefiele highlighted the eNaira’s potential to improve financial inclusion, reduce remittance costs and support tax collection.
The eNaira will be rolled out in phases and, eventually, will become legal tender. In the initial phase the central bank will issue, distribute and facilitate redemption of the digital currency.
In the next phase, registered financial institutions will receive the digital currency from the central bank and will also oversee issuance of alternative tokens.
Subsequent phases will focus on enabling transaction processing by integrating financial institutions, merchants and individual users. In the final phase, the eNaira will be included in retail consumer packages to provide a smoother experience for customers.