The central bank has been working on Project GIANT since 2017, conducting research on the opportunities and risks it poses to the Nigerian economy, which is the largest in Africa.
Nigeria is exploring blockchain, artificial intelligence and other emerging technologies in its bid to promote an innovation-driven culture.
The West African country has been cracking down on digital currencies for months, but according to one report, it has been working on the digital naira all this while.
The Securities and Exchange Commission acknowledged that a recent ban by the bank had disrupted Nigeria’s digital currency industry, while pledging support to promote innovation in the nascent industry.
Nigerian fintech startups, including those in the digital currency sector, have been relying on the bank verification number (BVN) as a primary know-your-customer (KYC) and anti-money laundering (AML) tool.
The central bank’s directive only applied to banks, prohibiting them from processing transactions related to digital currencies, an official said.
The Central Bank of Nigeria announced its “Naira 4 Dollar Scheme” recently, targeting diaspora remittances.
Despite thriving for years now, Nigeria’s digital currency industry faces its biggest threat yet following a central bank ban that has denied it basic banking services.
Speaking at a recent event, Yemi Osinbajo rebuked the recent ban on digital currencies, advocating for Nigerian authorities to regulate the industry.
The Central Bank of Nigeria believes the recent ban on digital currencies was in the best interest of the public, says its governor.
Senators want the Central Bank of Nigeria governor to brief its Banking Committee on why it ordered banks to shut down digital currency-related accounts in the country.