Nigeria seeks partners for a technological upgrade of its digital currency, the eNaira

Nigeria is in discussions with potential technology partners to create a brand-new system to control and manage the digital currency used by its central bank, the eNaira.

The Central Bank is in talks with digital companies concerning the eNaira, and a partner would aid Niger in achieving its goal of regulating technology

According to two persons familiar with the situation who declined to be identified because the situation is private, the Central Bank of Nigeria wants to create its own software for the digital currency so that it can maintain complete control over the endeavor. It has spoken about the early-stage intentions with New York-based technology company R3, one of the sources claimed.

In October 2021, Bitt Inc., which has offices in Draper, Utah, assisted the West African country in launching its central bank digital currency, or CBDC, making it the first nation to do so on the continent. The sources claimed that while a new partner would not instantly succeed Bitt, they would aid the central bank in achieving its long-term goal of controlling the underlying technology.

The CBN collaborates with a number of service providers to investigate technical advances for their digital infrastructure, Bitt stated in a written statement. The business noted that it is:

“currently developing more features and advancements” and that it “continues to work closely with the Nigerian central bank.”

Nigeria has been one of the nations leading efforts to create and promote blockchain-based digital equivalents of their traditional currencies, but like the majority of them, it has had difficulty gaining widespread adoption. Nonetheless, many central banks around the world are developing comparable initiatives. Their aspirations are motivated by the requirement to stay up with private-sector advancements in digital payments, which have encouraged customers to become cashless and given rise to cryptocurrencies and stablecoins.

Work on a digital pound, colloquially known as “Bitcoin,” has been intensified by Bank of England and UK Treasury officials, who note that the planned CBDC might offer considerable prospects for British consumers and businesses. The European Central Bank is researching the potential market effects and design and distribution options for a digital euro. At the conclusion of the inquiry phase in October, a decision about the development of a digital currency will be made.

The tokens, according to CBDC detractors, are a problem in search of a solution, might upset commercial banks, and would exclude customers and companies who still use cash.
According to the central bank, just a million or so Nigerians—out of a total population of over 200 million—had downloaded digital wallets to hold eNaira as of October, and transaction volumes have been insignificant. The regulator announced a revamp of the eNaira and a cashless policy four months ago in an effort to increase uptake.

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