Central bank currencies are becoming really a highly talked about aspect of cryptocurrencies. Banks are researching it, and most of them are planning on launching their CBDCs very soon. From the US to India, almost all major nations are in the race to beat currencies like Bitcoin. And now reports suggest that Nigeria will launch a central bank digital currency in October. This could also make them the first country to launch a CBDC.
Nigeria’s central bank digital currency
Nigeria is one of the few countries that are still resisting the crypto revolution. But they also have been one of the first to announce their own central bank digital currency. The bank has already been investing a lot of its resources to keep the project on track with a launch date of 1st October. The project is being referred to as the pilot scheme “GIANT”. And reportedly this has been in the works since 2017. So, in that regards, if it took them 4 years to develop the currency we can expect it to be good.
The central bank’s director of Nigeria said that they could not be left behind while major institutions and banks all over the world are researching crypto. It is clear that everyone is seeing it as the future and we should be aware this could be well like the internet revolution. This move from Nigeria also means that they will not be left behind in the same. The bank says the creation of a CBDC could help in better tax efficiency, easier monetary policy, better revenue collection gaming others.
I think that CBDCs are going to be a critical step towards the acceptance of cryptocurrencies. They could become like the stable coins we trade today and might help Bitcoin and other good cryptocurrencies reach their true potential. In no way do I see a competition between them and I think banks should reconsider making their own CBDC if they plan to compete with Bitcoin. The idea behind those coins is decentralization and it is not something one will get a CBDC. The fact that Nigeria will soon launch a central bank currency makes me excited and I hope the project stays on track.
What are your thoughts on the central bank currency digital Nigeria will launch soon? And do you think it will be good? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.