Nigeria’s central bank will explore the adoption of blockchain technology to power a central bank digital currency (CBDC), the potential of stablecoin adoption and regulatory considerations of initial coin offerings (ICOs) over the next two years.
Nigeria’s Central Bank believes monetary policy can be improved by monitoring and adjustability of a CBDC while the value of a digitized fiat currency can also be better controlled. The Bank also notes that it could better monitor and control tax evasion, money laundering, and other illegal activities through a CBDC.
Lastly, the CBN touts improved financial inclusion and economic development as well as spurring innovation and efficiency by boosting competition between existing financial institutions’ retail payments products. A 3-to-5-year time frame is recognized as an achievable time frame to roll out a CBDC solution in Nigeria.
(By GARETH JENKINSON)
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