According to a new report, Nigeria’s impending central bank digital money will be classified as “important national infrastructure.” This, according to the country’s central bank, will allow for improved operational and cybersecurity risk prevention.
Under Project GIANT, Nigeria began examining and researching the CBDC, called the e-Naira, five years ago. The Central Bank of Nigeria plans to launch the Hyperledger Fabric-based digital currency in October.
More facts regarding the highly guarded initiative have now been published in a story by a local newspaper. THISDAY claims to have obtained private CBDC documents, which suggest that the central bank wants for the CBDC to coexist with traditional payment systems, among other things. According to reports, the central bank has been trying to address interoperability concerns that may arise due to the deployment.
Nigeria’s central bank is aware of the potential for a CBDC to cause disruption, particularly to digital payment systems. According to the documents, the bank would use a suitable regulatory framework and other compliance tools to resolve this. Furthermore, the bank believes that the financial system’s long-term benefits will outweigh the initial risks and costs.
According to the materials, the benefits to Nigerians will be enormous. They will have access to a new set of banking services due to the CBDC’s integration with existing systems. The e-Naira will also usher in new payment methods and introduce new banking and non-bank financial firms to the market.
The CBN will work with the business sector to implement the e-Naira in two stages. First, the bank would create digital money and distribute it through licensed financial entities. These organizations would be in charge of disseminating the CBDC to Nigerians.
Another important finding from the stolen documents is that the e-Naira will be able to accept offline payments. This has been a crucial concern for central banks as they develop their CBDCs to create an all-inclusive system. Offline CBDC payments have already been tried in China and the Bahamas to varying degrees.
The e-Naira would reduce the cost of operations and cash management for Nigerian financial institutions and increase visibility and insight into transaction dates. These organizations will also benefit from the new economic prospects created by the adoption of digital money.