Digital currency Underway- CBN
The Central Bank of Nigeria (CBN) has revealed plans to announce the coming on board of digital currency before the end of the year.
The apex bank’s Director Information Technology, Rakiya Mohammed disclosed this at the end of 306th Bankers’ Committee Meeting, adding that all Nigerians would access the currency.
She however admitted that there are risks associated with the proposed digital currency, assuring that it will operate alongside other virtual currencies like the cryptocurrency, but cautioned that the CBN lacks control over other virtual or digital currencies as those transacting with such currencies are doing so strictly on personal basis.
She said: “Nobody stopped them. The CBN is exploring the possibility of issuing digital currency.
Nigeria cannot be left behind in the drive for digital currency. Over two years now, the CBN has been exploring the technology and made tremendous progress.
“In Nigeria, we have the notes and coins, so the CBN Digital Currency is meant to be a form of fiat money. It is going to complement the coins and notes that we have.”
According to her, the CBN digital currency is just as good as having cash in one’s pocket adding that before the end of the year, the CBN will be making announcement on the pilot scheme.
She said the move will boost financial inclusion and deepen access to financial services.
She said the digital currency will accelerate Nigeria’s ability to meet financial inclusion target because regardless of where you are, you can use the CBN digital currency.
“Having the CBN Digital Currency that is backed by government is good for the digital economy,” she said.
The apex bank’s Director, Banking Supervision, Haruna Mustafa, said the Bankers’ Committee discussed a range of issues.
He said there are ongoing plans by the CBN in collaboration with the managing directors of banks to launch domestic cards. Digital currency will be accessible to all Nigerians and will help promote financial inclusion.
Group Managing Director, Access Bank Plc, Herbert Wigwe, said the committee also decided that all card schemes will be registered locally to enhance the efficiency of the payment system.
“It will also minimise the funds spent by banks in card transactions thereby helping to conserve foreign currencies”, he said.
The committee also discussed the need for banks to ensure dollars are available to forex end users.
The Committee also talked about making forex available to end users for business and personal travel allowances. The Committee said Bureaux De Change (BDCs) will continue to have their weekly allocations, and the banks will have their allocations too.