SAT 04 SEPT, 2021-theGBJournal- The Central Bank Governor disclosed that the Central Bank of Nigeria (CBN) had started formal engagement with Bitt Inc., as the Technical Partner for its digital currency – eNaira – which is scheduled for pilot launch on 1st October 2021. Although the CBN’s decision to digitise the Naira started in 2017, we believe the rapid rise in the use of digital payments (exacerbated by the pandemic) has led the CBN to intensify its efforts to bring the project forward.
Besides, we understand that over 85 percent of Central Banks around the globe are now considering adopting digital currencies in their countries.
We believe digital currencies’ purported benefits (acceleration of financial inclusion, increase cross-border trade, improvements in monetary policy effectiveness, and payment systems efficiency) remains hypothetical for now, given that the global rollout of digital currencies is still at an early stage.
For instance, factors such as technological illiteracy, privacy concerns, and limited trust in the monetary authority could deter significant adoption of the eNaira.
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