The Nigerian digital currency will be officially launched on October 1st, 2021
Nigeria’s digital currency project should benefit from the collaboration with Bitt, the country’s central bank announced on Monday.
According to the press release, Barbados-based Bitt will provide technical assistance while the Central Bank of Nigeria (CBN) completes the rollout of the country’s digital currency, dubbed “eNaira”.
The CBN said in the statement that the decision for Bitt was due to the fintech company’s various strengths, including itss “Technological competence, efficiency, [and] Platform security “.
The bank also looked at the Barbados-based company’s previous experience on a related project that launched in April this year.
The move to Partner Bitt comes after an earlier announcement that the eNaira will hit the market on October 1st this year. It also comes on the back of the banking regulator warning banks and other financial institutions about Bitcoin and other cryptocurrencies.
Commenting on the announcement, Central Bank Governor Godwin Emefiele highlighted eNaira’s ability to improve financial inclusion, cheaper remittances and tax collection.
The introduction of eNaira is to take place gradually and the digital currency will become legal tender as part of the project. In the initial phase, the central bank will issue and distribute the digital currency and facilitate redemption.
In the next phase, registered financial institutions receive the digital currency from the bank and monitor the issue of stablecoins.
The next step is for the government to attempt to initiate transaction processing, which will continue with further integration between financial actors, traders and individual users. In the fifth stage, eNaira is used as part of the Retail Consumer Suite and enables customers to have a smoother experience.