Central banking officer - emerging countries
Central banking officer - emerging countries
As part of the charm offensive of the Central Bank of Nigeria (CBN), Folashodun Shonubi, the deputy governor of the institution, claims that the upcoming digital currency of the Central Bank (CBDC) will be a "safer option for privately output cryptocurrencies". ”
stability of the payment system
In addition, it is expected that the digital currency of the CBN-also known as E-Naira-will complement the current areas of the payment options. According to Shonubi, this will guarantee "the stability of the payment system in the long run".
meanwhile in his other remarks such as Shonubi stipulated that the CBDC promises the same and the same functions as Fiat Naira will have. The deputy governor explained:
The digital central bank currency offers all the advantages of cash, but in digital form. Every single digital currency is an electronic version of the cash, the legal means of payment. If you make a cash payment, the billing will take place immediately; Digital currencies bring the same promises and even more.
After the complete implementation, Shonubi expects "fast integration rates" in the coming days. In addition, after completing the CBDC Rollout, the e-naira will differ from privately issued cryptocurrencies that have so far "been used for investments".
digital currencies enable faster and cheaper cross -border transfers
Shonubi also points out that the CBN agrees to the general view that digital currencies can significantly reduce the costs of cross -border transfers. However, the deputy governor of CBN, who spoke at a virtual event organized by the Chartered Institute of Bankers of Nigeria (CIBN), warns that the central bank must pay attention to risks. He explained:
"For banks in developing countries, it will improve their liquidity and efficiency in national transfers and question the high transfer costs, while the world is recovering after pandemic.
The cbn, the Bitcoin.com/report-nigeria-tart-piloting-digital-currency-in-october/" Rel = "noopener"> expected to start the test phase of his cbdc project in October Routin -like explanations published that confirm the desire of the central bank to have a digital currency that competes with privately output cryptos such as Bitcoin. At the same time, the CBN has made a number of decisions that aim to reduce the use of cryptocurrencies or to discourage them.
Despite these decisions, however, In cryptoutrition grows further. When the introduction of e-naira begins, it will be interesting to see whether this leads to a lower Bitcoin trade volume for the nation.
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