Nigeria’s Central Bank Taps Bitt to Launch CBDC by Year’s End
The bank is working with the blockchain startup to develop an eNaira digital currency.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/OQPMEEHHD5CM5B6P4ZZ3SFAVRU.jpeg)
Godwin Emefiele, governor of Nigeria's central bank. (Chris J. Ratcliffe/Bloomberg via Getty Images)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
The Central Bank of Nigeria (CBN) said Monday it will work with Bitt Inc., a blockchain and payments startup, to launch the African nation’s eNaira digital currency later this year.
The central bank digital currency (CBDC) will ease cross-border trade, promote financial inclusion and speed up remittances, the central bank said. It also signaled in a press release that the CBDC could be used to improve monetary policy in the inflation-prone country.
“Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85% of central banks are now considering adopting digital currencies,” the CBN said in a statement.
Nigeria typically tops the list in peer-to-peer bitcoin payments, according to data site UsefulTulips.
Nigeria’s partner, Barbados-based Bitt, is a Medici Ventures-backed company with a history of CBDC contracts. But Bitt’s dealmaking was limited to central banks in its native Caribbean. Nigeria, which is Africa’s largest economy, is an entirely different challenge.
Bitt did not immediately respond to a request for comment.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.