Topic: Central Bank of Nigeria to launch digital currency Oct 1, 2021. (Read 189 times)

I was listening to the CBN governor interview the other day and from all indications, the Central bank does not have the technical knowledge to develop CBCN by the year 2021 maybe it’s just a policy statement to bring to the purview of the public what the central bank is trying to do after banning cryptocurrency trading in Nigeria.

It’s going to take quite a long time before a digital naira is going to be created and utilize in Nigeria. The central bank should focus all attention on economic recovery and fight inflation to its barest minimum. After then there can talk about developing a digital currency.

Obviously with cases of corruption in that country , maybe the government is planning to take advantage of the crypto users in their place to at least take this bait.

But Nigerian investors and crypto users are bright enough to know whats the plan behind this  launching in so much faster  action.

Whatever the Nigeria government are trying to do is for their own good not the innocent people living in Nigeria, the government don't do things that will benefit their own people, I'm interested in seeing how this will go in the end, if truly they want CBDC to happen then it won't be good for crypto investors in Nigeria

I am not entirely sure if this will go as well as they are expecting it to go. This is a nation that nearly banned everything about crypto and now they are saying they want to launch a digital currency? I mean think about it we are talking about something that is not %100 perfect but also not that bad neither when you are using it with other cryptos, however all by itself suddenly it becomes something that is very useless, why would I want a CBDC without any crypto at all.

Nigeria needs to let everyone in their nation to be able to use crypto again without fear, and not just like make it legal or something, they need to also make sure they support it and this is known as well. Would you invest millions of dollars starting a crypto business in Nigeria if you were scared that it may get cancelled in a few years? So, they need to show some support for it if they want their CBDC to be accepted as well.

October 1 is an incredibly aggressive timeline for a launch, I'm surprised they're announcing something so soon and I'll be even more surprised if they can actually pull it off. It's not the sort of thing you can just set up and launch successfully on a country-wide scale with so little time.

Maybe because the Nigerian central bank did a long study so that now it accepts crypto, we will see developments in at least 3 more years, hopefully it can have a good impact on the Nigerian economy and benefit globally.

It's not funny at all. They are trying to replace the use of Bitcoin with the use of their own centralized, fully traceable and full control currency, which is even worse than fiat.
How is it easier to do that? Banning the competition first.
Will this CBDC solve the problems in the country? Most probably not and will also create new ones. But I hope that after some point they'll lift the ban on proper crypto (at least Bitcoin).

That's really funny central bank that banned cryptocurrency few months ago in Nigeria are trying to launch digital currency so what's the purpose of banning cryptocurrency in the first place when they know they are also going to launch digital currency. I think this is a very nice idea but hope this is not a another method of embezzling money again because any slight attempt in Nigeria they always make the use of it to steal money.

That place doesn't matter, India is above France by nominal GDP and Mexico and Indonesia above Switzerland and Netherlands, do you really think it's a fair comparison to the capabilities those countries have at their disposal now?
Nigeria might be #30 by nominal but by capita, they are #160, in short, large population but poor.

And when one of these countries comes up with stuff like that, saying they will do in just three months what other countries couldn't do it's clear what will happen, it will be a flop. What I suspect is going to happen is a lot of money going to some official and business to develop it and then nothing, somebody got some fat checks and the project will be abandoned because of...reasons!


Have some news for the press that they are working on something and not just laying around all day? Also as I said a way to direct some research funds to some probably new company, plus a lot of high paid jobs in new commissions for some relatives that need one?


Why?

I think they already knew what was going on since at the end of the day, they banned cryptocurrencies like bitcoins and at the same time they were so adamant on explaining the public about how it would not affect them. I do think that banning cryptocurrencies like bitcoins was step one. After that they are going to deviate the crowd towards the crypto that the government launches.

They are doing that during a pandemic which might not give results that they are expecting but I do believe that they have to give special discounts to get the ball rolling.


I think cryptocurrencies like bitcoins were a better option since these cryptos are more dependent on the whole world and not just one country. Also bitcoins is already established. It would take a while to establish the government's crypto. Which would technically be a fiat.

Is October 1, 2021, too soon and too hasty in launching Nigerian digital money, economically they have not solved all the problems until now. I don't mean I'm not sure, but various factors that should have been completed this year alone have often been postponed due to the turmoil caused during Covid 19. And that is the most important point that must be resolved first. Apart from the policy of launching their digital money soon, I need to know if their preparation is really mature enough and ready to face the crypto market turmoil that will creep up in Nigeria.

It's quite nice to hear how CBDC in Nigeria is launching in the very near future this year. maybe it will push them to a higher rank than they are currently. However, at this time I have not heard the approval that came out of the US parliament on their response to Nigeria.

Jokes and jokes. Another format to lunder money. They want to go digital and government operations are still manual simply because they are find of mismanagement of funds meant for this things. Give it sometimes, the news will soon fade away like other great headlines.
Anything fintech about Nigeria that's not private, don't take it serious. Look at NIN, till date they couldn't print out national identity for people and there is yearly allocation meant for those things and budgets annually.
They are only concerned about election, power, and corruption.

I don't find it surprising that they're launching faster. Firstly, they have less to risk. China is second biggest economy in the world, and countries from the EU are also all pretty high. As for Nigeria, it's #30, so while it's not doing badly itself, it could use a boost and might thus be willing to risk more than top economies. Apart from that, the EU already has regulations of cryptos and China can impose whichever restrictions it wants because it's authoritarian, but Nigeria recently created a lot of confusion with their stance on cryptos, and there have been talks about regulating cryptos very soon, so they're once again more motivated to speed up their own little centralized project in hope that people would be willing to give up Bitcoin if a state-backed alternative is available.

Well, if you look at it from the government perspective, they have no reason to stop just because some people claim they're applying a double standard. Bitcoin is treated differently since they can't control it, and it's hard to steer the narrative.

But as far as I'm aware, the situation in Nigeria is not that bad. Hopefully, people can trade crypto as usual even if they have their own digital currency. It would improve the way people trade instead, especially if it's as open as other digital currency (I doubt it though).

I read here too that there was a ban or limitation to use bitcoin just like in China, now the people that made the ban are talking of digital currency. Are they going to open the ban against the people or they will keep abandoning it while they build there digital currency. They are making double standard just like China.

Nigerians have already accepted digital currencies, I mean Nigerians love the idea of decentralized cryptocurrencies and they have been buying and trading it for quite a while now, the problem is, the government has no control over such dex crypto, thus they first banned Bitcoin transactions through exchanges and now it's the idea of a CBDC, my point is basically this, the government aren't doing this to facilitate the idea of a digital currency or to stimulate people's awareness of it, but it's more of their own benefits on the basis of control, and then a ploy to prolly take the attention of Bitcoin and other dex crypto they can't print or control.
If you live in Nigeria, you'd prolly understand the state of the Nigerian Naira atm, the country imo doesn't need more "monetary policies & methods", but rather should channel it's attention to providing a better economic condition and put greater efforts in fighting the present state of inflation plaguing the Naira. I'm afraid this is no growth whatsoever, and a large percentage of Nigerians would definitely share in my sentiments.

I think if we look at every attempt behind any country banning crypto, it is always because there is an interior motive behind that action, it seems the Nigerian government have come to realize the importance of crypto in the nations economy and they decide to create an native coin that have total control of instead of strengthening the already existing coins to benefit the economy. A very clever move by the government of Nigeria, with the introduction of their own native coin the citizens won't need to fear any ban or anything like that. 

Don't worry too much, there are benefits to implementing CBDC.

1. People accept digital currency, and it will be easier to accept encrypted currency in the future.

2.Promote the government to explore more monetary policies and methods. This is a growth process. It is impossible to succeed the first time.

I believe Nigeria is not a country Bitcoin and other cryptocurrencies can be completely banned like that, after the CBN ban, cryptocurrencies trading volume in Nigeria has never gone down. Although, I believe the motive of the the CBN is because of the digital CBDC pilot that would have led to the ban while some of us think it will be as a resulted of EndSARs protest. But I believe so far the legislative arm of government are not involved in this, decentralized cryptocurrencies like bitcoin will still be used by Nigerians.

Nigeria is not that developed but they still allow freedom than China, they allow another countries social media apps and the likes. We all know how China like to act like a world on their own, Nigeria is not like that imo.

I just hope that this introduction of CBDC isn't going to cause Nigeria to then ban again other cryptocurrencies like  what China did because I just don't think that it's going to be the right thing to do whenever you introduce your own shitcoin.

No it does not, Fiat/cash (in this case, the Nigerian Naira) will still be used with the centralized digital version that are working on launching as soon as possible, and I think that's the same case in every other country that's working on a CBDC, like China (digital Yuan), the U.S (digital dollar) or even the EU (digital Euro) etc. To the best of my knowledge, CBDC's doesn't mean cash will be totally replaced, though the government could enforce some compulsory payments to be made using their digital currencies so as to compel more people to use it, but for now, cash will very much be around (except they have plans of a total overhaul sometime in the future).

You have to also include the likelihood that once they get a taste of CBDC they might not even try use any other form of digital currency other than the one that they currently use but if there are people that are using other digital currency besides CBDC then the likelihood might be minimized since influence from people that have more experience will affect greatly other people.

The sentiment will be good trust me, these government backed CBDC will have the best propaganda to have when they are finally introduced to the public. Plus, I worry that when countries create their own crypto that they will ban the other existing ones to eliminate the competition.

Although, bitcoin and other cryptocurrencies are banned by Central Bank of Nigeria, but the crypto trading volume has never been affected yet, this means the CBN ban did not have so much effect like that. I believe this can help some people to make use of decentralized cryptocurrencies as they will have known about centralized ones. But, I still also think otherwise that how about people that are not even literate, and people that have no access to browsing devices which still makes me think otherwise.

Do not mind that false statement from news platforms, I have been believing before that immediately cryptocurrencies are banned in a country that the p2p price will increase in the country, but as I live in Nigeria makes, I realized it is actually not true, or maybe different in Nigeria. When Bitcoin was banned, I checked some exchanges Nigerians are using. I noticed the price of bitcoin increased 1.5x on Luno and Quidax, but not tradable. If you want to buy it on binance, Nigerian Naira is 1.8x higher than the usual price, but if you trade it in p2p, the price will balance to 1x, that is, no gain while Bitcoin and other cryptocurrencies has the normal price. When Quidax p2p began, the price went back to normal. So, normally, the price of bitcoin is still normal as before, no increase. On the exchanges that it increased, it is not tradable, on exchanges that bitcoin is tradable, not increase, no changes. 

This is what I am fearing most, it will not be good for something bad to happen to the digital currency after launch.

CBDC does imply a full replacement of cash with digital currency, right?

So with this project in action and complications with cryptocurrencies people of Nigeria will basically be left with no other choice than embrace this new implementation?

If so, that is pretty sad, where is the government going with this anyway? Like you said, it’s not like CBDC will help with the economical situation out there. Cash production is expensive, but this whole money revolution is going to cost Nigeria a lot, it can take years to cover losses.

Venezuela "launched" their CBDC years ago. I hope nigeria does a better job with their CBDC than venezuela did.

The main question here is whether nigerian central banks are amassing the hardware infrastructure, base of software developers and partnerships needed to rollout and support a CBDC. Do they have a basic developer roadmap with a timeline. Is there a blueprint with basic design goals. These are not trivial tasks and governments of the world, including the united states, are known to struggle with such projects. Which have a tendency to go overbudget and take longer than expected.

One example of this is the US government website for america's affordable care act enrollees. The website alone costed $1 billion dollars and was plagued with bugs and technical issues. There were not any significant technical obstacles for the website to solve. It was simply a website for people to sign up for healthcare coverage, to receive the subsidy which was supposed to make healthcare in america more affordable.

I know I've said this sometime before but I'd say it again, I honestly see no reason why the Nigerian government are working on launching a CBDC, tbh, if you are a resident of Nigeria you'd actually understand why I'm indifferent to this motion of a CBDC, first the government restricted Nigerian banks from working directly with crypto exchanges for no exact reason, they prolly did that cause a CBDC was at the back of their mind, Bitcoin is not outrightly banned, but they have made it somewhat uncomfortable (cause p2p price has risen) for people to buy and sell it.

Inflation is high in Nigeria at the moment and the naira is devaluing day by day, imo, there are more than a million economic problems in Nigeria that are yet to be solved, thus making the idea of a CBDC somewhat of a misplaced priority, I mean for a developing nation with lack of opportunities and a high level of unemployment, they should rather embrace the idea of Bitcoin, than launching a CBDC that will be controlled just like the Nigerian Naira, this act does not better the life of the average Nigerian in a struggling economy, it only satisfies the governments ego and prolly a way for them to embezzle more funds.

Indeed, that is quite fast! We will see how things will pan out here once they deploy their very own CBDC. Interested on the sentiments coming from their own citizens. Because once people are getting acquainted with the use of CBDC, the likelihood of going into crypto - btc and other alts, is very high. As they will learn the nature of CBDCs and crypto, their differences and the benefits, some may eventually go to crypto because of so many advantages.

I remembered a month ago when the Director-Information Technology Department, Central Bank of Nigeria, Mrs Rakiyat Mohammed said that the banking regulator will launch a digital currency before the end of 2021. It was surprising because we all know how long it took China before lauching digital Yuan. Also, the digital Euro is said to take 5 years to launch:


I do not think United States has really planned on creating a digital currency as well, and I believe it could take time before the launch. I recently read another news today that the the Nigerian CBDC pilot scheme will be launched October 1st, 2021 which is will be fast than we thought. Although, Nairametrics said that the press briefing delivered by the Director IT department, Rakiya Mohammed, at the end of the meeting explained that the Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of this year.

I hope this is not too early because it was not long ago when CBN announced its ambition to create CBDC.

https://punchng.com/cbn-to-launch-digital-currency-oct-1/