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Central Bank of Nigeria says CBDC pilot will come before the year ends

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The Central Bank of Nigeria (CBN) has revealed its plans to launch a digital currency pilot as soon as the end of this year, according to some reports.

While previously, the CBN came to a consensus to restrict the cryptocurrency sector by imposing regulatory sanctions on monetary businesses that serviced crypto exchanges, Governor Godwin Emefiele, in a complete U-turn on bitcoin and other cryptocurrencies, said he will allow them.

In what is being regarded as a reversal of fortunes, it now looks that the Nigerian officials are gearing to embrace blockchain technology.

Already years in the making

As it turns out, despite Nigeria’s skepticism of fintech, its central bank has already been working on a digital currency for the past two years.

Rakiya Mohammed, the CBN Director of Information Technology, re-echoed the sentiments of other nations as far as a digital currency is concerned. That is, their country will not be left behind in this technological revolution.

The director said, “We’re all aware that about 80% of central banks in the world exploring the possibility of issuing central bank digital currencies, and Nigeria cannot be left behind.”

Only trying to protect citizens

It is public knowledge that CBN was adamant about its previous anti-bitcoin position. In explaining this, the financial institution said it was only trying to protect the citizens of Nigeria.

It also pointed out that there is no legal remedy if things go wrong in an unregulated market such as that of cryptocurrencies like bitcoin.

CBN did not also spare the usual concept that links the crypto and other digital currencies to criminal activities such as money laundering and terrorist financing.

Meanwhile, hopefuls are waiting for additional updates on the progress of the works the financial institution has already done to make the issuance of a CBDC in the country a possibility.

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/central-bank-of-nigeria-says-cbdc-pilot-will-come-before-the-year-ends/

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