Nigeria's Central Bank Selects Bitt to Launch CBDC by the End of the Year

The bank is collaborating with a blockchain company to create a digital currency called eNaira.

Nigeria's Central Bank (CBN) said Monday that it would collaborate with Bitt Inc., a blockchain and payments company, to create the eNaira digital currency later this year.

According to the central bank, the central bank digital currency (CBDC) would facilitate cross-border commerce, promote financial inclusion, and speed up remittances. The CBDC may also be used to enhance monetary policy in the inflation-prone nation, according to a news statement.

The CBN's decision "follows an obvious worldwide trend in which over 85 percent of central banks are currently contemplating embracing digital currencies," according to a statement.

According to statistics portal UsefulTulips, Nigeria usually ranks first in peer-to-peer bitcoin (BTC, -0.98% ) payments.

Barbados-based Bitt, Nigeria's partner, is a Medici Ventures-backed business with a track record of CBDC contracts. Bitt's dealmaking, on the other hand, was restricted to Caribbean central banks. Nigeria, being Africa's biggest economy, presents a unique set of challenges.

Bitt did not reply to a request for comment right away.

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