If there is any controversial news currently, it is the Central Bank of Nigeria with regard to Central Bank Digital Currency.
The Central Bank of Nigeria has been known to be an antagonist for cryptocurrency.
It has issued a series of directives to abort cryptocurrency transactions in the country.
One of the directives is the one released on the 7th of February, 2021.
According to the directives, all commercial banks and other institutions that offer banking services were directed to stop all cryptocurrency transactions on all platforms.
The directives further state that all accounts that have been linked to cryptocurrency transactions should be closed down.
It was a hard blow on crypto traders and enthusiasts as many lost their bank accounts due to the directive.
Among all these, kurepay has been rendering its services as promised to all its users.
After the ban on cryptocurrency transactions, CBN revealed their plan on creating a central bank digital currency.
It was like a joke and everyone was anticipating whether it would become a reality or not.
The current stage
It is no longer a plan but necessary actions have been put in place to pilot the central bank digital currency by October 1.
October 1 marks Nigeria independence day and the coming one will leave a long lasting memory.
According to Rakiya Mohammed, Director of Information Technology at the Bank of Nigeria, stated in a webinar that it is possible to conduct a corresponding proof of concept (POC) by the end of this year at the latest.
This project “GIANT” will operate on the Hyperledger Fabric blockchain, dedicated to providing private companies with blockchain-based products, solutions, and applications.
Benefits of Central bank digital currency
The major benefits of CBDC as highlighted by CBN are;
- Macro and growth management
- Cross border trade support
- Financial inclusion
Potential benefits could still extend further to higher efficiency for payments and remittances, better monetary policy transmission, improved tax revenue collection, and the facilitation of targeted social policies.
This is an official proof that the Central Bank of Nigeria has interest in cryptocurrency.
It should be noted that the SEC has approved crypto assets in Nigeria prior to the ban by CBN.
From the recent updates, it can be deduced that CBN is actually looking for a way to regularise the cryptocurrency market in Nigeria.
With the ban, Nigeria is one of the highest markets for cryptocurrency in the whole world.
If peradventure the ban is now reversed like that of crypto ban reversed by Reserve Bank of India, using cryptocurrency in Nigeria will hit mainstream adoption.
Are you prepared for the next change in government policy?
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