Nigeria’s CBN Meets New York-Based Firm To Revive The eNaira
According to reports, the Central Bank of Nigeria (CBN) is discussing with new “technology partners” to create an enhanced system for managing the eNaira. The CBN has made several efforts to develop a more effective CBDC.
Per the reports, it is now seeking the assistance of a New York-based technology company to overhaul the underlying technology.
CBN Meets With R3 To Revamp The eNaira
Sources familiar with the matter have revealed that the Nigerian financial regulator has discussed these plans with technology company R3. The aim is to develop new software for the eNaira, while the central bank retains complete control over the project.
However, the source, who wished to remain anonymous, emphasized that the discussions were confidential. Meanwhile, the development of the eNaira commenced in 2021 with the assistance of Bitt Inc., a US-based company.
The report indicates that the new technology partner will not replace Bitt Inc. immediately. Instead, it will gradually give full control to the Nigerian financial regulator.
Bitt Inc. acknowledged that the CBN collaborates on its technological advancements with multiple partners. It also confirmed that it maintains a close partnership with the central bank.
Moreover, Bitt Inc. said it is currently developing additional features and improvements. Despite being one of the earliest countries to release a CBDC, Nigeria’s eNaira has encountered slow adoption rates locally.
Bitcoin Adoption Increasing In Nigeria
Last month, a Nigerian innovator introduced the nation’s first active Bitcoin Lightning node. Shortly after, the government declared its intention to establish a regulatory framework for stablecoins and Initial Coin Offerings (ICOs).
Moreover, there has been a rise in Bitcoin adoption in countries using the Central African franc. Bitcoin conferences and forums held in Ghana and Senegal have helped to bolster BTC’s adoption.
Meanwhile, there have been positive indications of BTC adoption in Nigeria, including discussions of legal tender status. The traditional financial system has recently imposed additional limitations in 2023.
For instance, the government’s objective to eliminate the use of cash has led to restrictions such as a weekly withdrawal limit of $44 per person and an $11,000 maximum for businesses.
Notably, Nigeria is among the 87 nations with CBDC developmental initiatives. Japan and Russia, which have plans to introduce their national digital currencies before summer, are also among them.
Additionally, San Francisco city in the US is exploring the potential development of a CBDC system. However, some activists are actively opposing the implementation of these centralized CBDCs.
They believe the government can use them as “surveillance” tools.
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