In anticipation of testing the digital Nigerian naira, the Nigerian Central Bank announced that the state stablecoin will become legal tender and must be accepted by all organizations in the country.
Musa Jimoh, head of the payment systems management department of the Central Bank of Nigeria, said that the digital Nigerian naira should be accepted across the country, along with the national currency. Dzhimoh added that from October 1, local residents will be able to use special wallets for the state cryptocurrency.
Any retail outlet accepting naira should also use digital naira. The central bank is responsible for issuing regular money and digital naira, which will open up access to banking services for Nigerians. Dzhimoh believes that the local population will not experience technical difficulties using the state stablecoin.
“Digital naira is a journey. We do not expect it to be accepted by all Nigerian businesses from October 1st, or to be available to all users. The adoption of the digital currency of the Central Bank will be gradual, ”said Dzhimoh.
Digital Naira users will be able to save on transaction fees, he said. In addition, digital naira will reduce government spending on printing paper banknotes, as the naira will now be “minted” electronically. For this, the central bank is cooperating with Bitt Inc, which already has experience in creating similar projects.
“Not every country is adopting digital currency. We are “paving the way” in Africa. Nigeria is the only African country that intends to harness the power of digital currency, while developed countries do not. In this regard, it is worth noting China and the Bahamas, which have taken serious steps to implement this initiative, ”said Dzhimoh.
In August, the Central Bank of Nigeria presented a guide to issuing digital naira and options for its use. This summer, the Central Bank of Ghana announced that it is also preparing to test the digital Ghanaian cedi.