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HomeBusinessWhy CBN appoints Bitt Inc. technical partner for its digital currency, eNaira

Why CBN appoints Bitt Inc. technical partner for its digital currency, eNaira

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The Central Bank of Nigeria (CBN) has announced the formal engagement of the global Fintech company, Bitt Inc., as the Technical Partner for its digital currency, named eNaira, which is due to be unveiled later in the year.

In a statement by the regulatory bank spokesman, Osita Nwanisobi he said the CBN’s selection of Bitt Inc, from among highly competitive bidders, was hinged on the company’s technological competence, efficiency, platform security, interoperability, and implementation experience.

In choosing Bitt Inc, the CBN will rely on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries.

Bitt Inc. was key to the development and successful launch of the central bank digital currency (CBDC) pilot of the Eastern Caribbean Central Bank (ECCB) in April 2021.

The CBN is expected to launch the digiral currency by October in line with global trend in which over 85 percent of Central Banks are now considering adopting digital currencies in their countries.

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The regulatory bank had in February announced that dealing in cryptocurrencies and facilitating payment for cryptocurrency exchanges are prohibited.

The CBN further instructed all banks and other financial institutions to identify individuals or entities who transact in cryptocurrency or operate cryptocurrency exchanges and close the accounts of such persons or entities.

Quoting the CBN Governor, Godwin Emefiele, the statement listed the benefits of the Central Bank Digital Currency (CBDC) to include increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.

It said Project Giant, as the Nigerian CBDC pilot is known, has been a long and thorough process for the CBN, with the Bank’s decision to digitize the Naira in 2017, following extensive research and explorations.

Bitt Inc. said on its website that it creating payment systems that promote social inclusion, financial empowerment and economic growth for this and future generations.

In 2019, the Eastern Caribbean Central Bank (ECCB) and the Barbados-based fintech company, Bitt Inc., signed a contract to conduct a blockchain-issued central bank digital currency (CBDC) pilot within the Eastern Caribbean Currency Union (ECCU).

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