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From Uche Usim, Abuja
The Central Bank of Nigeria (CBN) on Friday explained the selection process that saw Bitt Inc emerge as the its preferred technical partner for the implementation of the Central Bank Digital Currency (CBDC) slated for launch by year end.
Spokesman of CBN, Mr Osita Nwanisobi at an interactive session with journalists in Abuja stated the Bitt Inc was carefully selected from a group of 15 prospective technical partners, adding that the bank adhered strictly to the provisions of the Bureau of Public Procurement as stipulated in the Public Procurement Act.
He emphasized that the Bank based its selection assessment on technology ownership and control; implementation timeline; efficiency, ease of adoption; support for anti-money laundering and combating the financing of terrorism (AML/CFT); platform security; interoperability; and implementation experience, among others.
“Bitt was the first company to digitize a national currency on a blockchain, thus creating the first synthetic CBDC, with the support of the Central Bank of Barbados Governor and the Minister of Finance. That system is still in operation today,” he explained.
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While urging members of the public to embrace the eNaira upon unveiling, in the forthcoming weeks, he also enjoined stakeholders to support the Bank’s policies, stressing that the CBN remained focused on its resolve of being a people-centered Central Bank.
He also reiterated that its digital currency, eNaira will enhance financial inclusion and overall effectiveness of its monetary policy.
Nwanisobi highlighted the benefits of the eNaira to include a marked improvement in its monetary policy transmission, adding that transactions on the eNaira will be at lower cost and greater time efficiency for all users.
According to him, the Central Bank Digital Currency (CBDC), which he noted would complement rather than replace the paper money and coins currently in circulation, would also facilitate cross-border remittances as well as improve efficiency in the payment system.
He further explained that the eNaira had the potential to resolve many of the issues currently associated with cross-border payment and could help improve forex accretion and utilization. In addition, he said issuing a CBDC could reduce demand for foreign currencies as Nigerians could use CBDC to transact both locally and across borders in future.
