Nigeria's CBDC 'a safer option ' than Private Issue Cryptocurrencies: Central Bank Official
As Folashodun Shonubi, vice-governor of the institution, under the The Central Bank of Nigeria (CBN) digital currency charm offensive claimed that the country's next central bank digital currency (CBDC) would be a "safer option compared to private cryptocurrency ".
Stability of the payment system
In addition, the digital currency of the CBN - also known as e-naira - is expected to complementthe current areas of payment nt options. This, according to Shonubi, will ensure "the stability of the payment system in the long run." "
Meanwhile, in his other remarks like reported by Nairametrics, Shonubi suggested that the CBDC would carry the same promises and have the same functions as the fiat naira. The deputy governor explained:
Once fully implemented, Shonubi said he expects to see "rapid inclusion rates " in the coming days. Additionally, when the CBDC deployment is complete, e-naira will stand out from privately issued cryptocurrencies that have so far been "used for investment".
Digital currencies Allow shipments of faster and cheaper cross- funds
Shonubi also suggestsent that the CBN agrees with the general view that digital currencies can significantly reduce the cost of cross- remittances. However, the vice-governor of the CBN, who spoke at a virtual event hosted by the Chartered Institute of Bankers of Nigeria (CIBN), warns that there are risks the central bank must be at the lookout. He explained:
"For banks in developing countries, this will improve their liquidity, the efficiency of domestic remittances and challenge the high cost of remittances as the world bounces back. after the pandemic. I am of the opinion that the era of the CBDC fosters greater opportunities, and the central bank must be aware of the risks and mitigate them. "
The CBN, which expects to start the testing phase of its CBDC project in October,Recently issued statements that reiterate the central bank's desire for a digital currency that competes with privately issued cryptos like bitcoin. At the same time, the CBN has made a series of decisions that seek to decrease or discourage the use of cryptocurrencies.
Despite these decisions, however, interest in cryptocurrencies continues to grow. When the e-naira rollout begins, it will be interesting to see if this translates into a reduction in bitcoin trading volumes for the nation.
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