Friday , September 24 2021

The Central Bank of Nigeria will launch a pilot project for the new CBDC on October 1 – Marseille News

To Angel Di Matteo @shadowargel

According to the bank, the new CBDC will be known as GIANT and has been in development since 2017. The tests will allow the central bank to test first hand some concepts related to the adoption and use of these assets.


The Central Bank of Nigeria (CBN), the governing body of the African country’s monetary policies, has announced that it will launch a pilot test for its own digital currency backed by the central bank from 1 October. (CBDC).

CBN will pilot its CBDC in October this year

This was revealed by CBN in a statement today, where IT director Rakiya Mohammed said it would coincide with the pilot testing of GIANT, the 2017 CBDC development project, which will run on the Hyperledger Fabric Blockchain network.

In this regard, Mohammed and other CBN representatives highlighted the country’s efforts to move forward in this area and not lag behind the progress reported by other countries such as China. They also pointed out that there are many central banks doing research and development for their own CBDCs, which now face the challenges that would result from creating a nationally circulating digital currency.

According to CBN representatives, the creation of its own digital currency would contribute to management processes and economic growth, mainly by supporting financial inclusion and international business operations, extending these benefits to payment and transfer systems, as facilitate capital flows. among the most interested.

Change of perspective towards cryptocurrencies

This new announcement by CBN comes at a time when the institution has gradually changed the perspective with which it focused on major cryptocurrencies, moving from a totally restrictive approach to allowing the marketing of digital currencies in its territory.

Keep in mind that in Nigeria, currencies like Bitcoin have represented a mechanism for residents to protect themselves from the economic hardships the country is going through. The large flow of capital into cryptocurrencies has led the CBN and the authorities to take a restrictive approach to these assets, while several civil society organizations have taken advantage of cryptocurrencies to receive funding from people interested in supporting causes.

While the concept of CBDC is completely different from the principles on which the major cryptocurrencies that are already known to work are based, many analysts believe that when they start testing these assets there will be more publicity about digital currencies. gain direct experience in the use and management of these assets, migrating to others that offer greater guarantees of freedom and confidentiality in operations.

As for the new pilot, it is currently unknown the scope of the project and the entities that will participate in these first tests.

Recommended reading

Source: Cointelegraph, Gazettengr

Angel Di Matteo’s version / DailyBitcoin

Image of Unsplash

Source link