The Nigerian Central Bank has indicated that a Central Bank Digital Currency (CBDC) will be launched before the end of 2021. According to local news, Mrs. Rakiyat Mohammed, the Director of the Information Technology Department, announced during the banker’s committee meeting on Thursday.
Mrs. Rakiyat stated that around 80% of central banks throughout the globe are considering creating a central bank digital currency, and Nigeria cannot be left behind.
She also noted that the CBN had been researching technology for two years and had achieved significant progress.
While explaining what the Nigerian digital currency would look like, the director said,
“We have currency in two forms in Nigeria as of now, there are the notes, and there are the coins. So the Central Bank currency is to be the third form of money which means just as we have electronic money, digital money is not new in Nigeria. Just as we are about the third or fifth in the whole world as far as advancement in the use of digital money is concerned. So this is going to compliment the coins and cash that we have. So the Central Bank digital currency will be as good as you having cash in your pocket, and even as you have the cash in your pocket, you are going to have the cash on your phone.”
Nigeria has joined the list of African countries planning to introduce CBDC.
Nigeria has now joined a small group of African countries aiming to issue a CBDC. The Bank of Ghana just revealed that they are working on a CBDC and are far into the process.
South Africa and Kenya have already expressed interest in exploring the possibility of establishing a CBDC for their respective countries.
However, China continues to lead the CBDC race worldwide since it looks to have completed development and is simply testing the digital currency ahead of its final debut in 2022.