The government of Nigeria has launched a website to test digital naira, the country’s government cryptocurrency, and a digital wallet that can be tied to a bank account.
The website says that digital naira is a “unique form of money” denominated in local currency and serves as both a medium of exchange and store of value. The site for testing the state cryptocurrency of Nigeria was launched earlier than originally planned.
Digital Naira will be issued and regulated by the Central Bank of Nigeria (CBN). Recall that in February, the Central Bank of Nigeria banned banks from serving cryptocurrency companies. The country’s authorities see the launch of the state-owned cryptocurrency as an effective means of combating the growing popularity of the sector.
According to the government, digital naira will boost economic growth, provide cheaper remittances and reduce fraud. In addition, according to the information on the website, the state cryptocurrency is a secure means of payment.
The government has also begun testing a digital government cryptocurrency wallet that a user can either link to their bank account or use a prepaid option.
Recall that in August, the Central Bank of Nigeria presented a plan for the use of digital naira, and in September it announced that enterprises would be required to accept state cryptocurrency for payments.