The launch of a pilot program to create its digital currency will culminate four years of hard work by the Central Bank of Nigeria (CBN). It will be launched on October 1, 2021. The CBDC project “GIANT”, also known as Hyperledger Fabric Modular Blockchain, will be based on this modular blockchain.
Nigeria is determined not to fall behind the rest
The Central Bank of Nigeria announced that the pilot CBDC pilot project would begin in October, during a webinar. Rakiya Mohamed, director of information technology at CBN, pointed out that the institution had spent four years researching the project and developing it.
The pilot program will be called “GIANT” by CBN and run on Hyperledger Fabric. Mohammed stated that CBN could carry out proof of concept by the end of 2021.
Leading Nigerian bankstrategists recalled that more than 80% worldwide central banks are trying to issue their CBDC.
Nigeria hopes to use this future project to address growing regional problems such as a lack of effective monetary policies, tax collection efficiency, improved payment efficiency and targeted social intervention. CBN highlighted the fact that enaira would facilitate crossborder trading.
Nigeria is one among the top cryptocurrency markets in Africa. In this country, millions of young people are using digital assets to address their financial woes.
CBN placed restrictions on virtual currency trading not so long ago and asked for local banks to stop providing services to crypto customers. CBN explained that criminal organizations used these assets to hide money and finance terrorism. However, the central banks changed their stance a few months later. They announced that they did not mind cryptocurrency and did not discourage people who wanted to trade them.
Although many thought this would threaten the market and decrease its size, it wasn’t the case. Despite the CBN ban, Nigerians remain bullish, and the country is now the largest peer-to-peer market for Paxful. The platform boasted a trading volume of $1.5 million, with more than a 1.5million local users.