The Central bank of Nigeria plans on launching a CBDC this year after the recent crypto U-turn according to the latest reports that we have in our latest cryptocurrency latest news today.
According to Reuters, the Central Bank of Nigeria plans on launching a digital currency pilot at the end of this year. Last month, the CBN Governor Godwin Emefiele made a sharp U-turn on BTC and other cryptos by saying that he will allow the but the CBN in the past demanded a restriction in the crypto sector by imposing regulatory sanctions on monetary businesses that services crypto exchanges.
In a turn of events, it looks as though the Nigerian officials are embracing blockchain technology and in what seems like a showdown between the private and public crypto assets in the future, arguments against the central bank offerings remain pertinent. Despite the aversion towards fintech in the country, Nigeria noted that the central bank was working on a digital currency for the past two years.
The CBN Director of Information Technology Rakiya Mohammed echoed along with other countries and this meant that Nigeria won’t be left behind in the tech revolution:
“We’re all aware that about 80% of central banks in the world exploring the possibility of issuing central bank digital currency, and Nigeria cannot be left behind.”
One of the reasons given for the CBN previous anti-BTC stance was a need to protect the citizens. In 2018, the CBN said there is no legal redress if things turn out for the worse in the unregulated market. There are also the usual suspicions on illicit activity or terrorist financing and money laundering. Mohammed sells the idea of the central bank digital currency on bringing financial inclusion and having support from the Nigerian government:
“If you have a central bank digital currency that is backed by the government, then people can make transactions online without fear of any default.”
As mentioned previously, billionaire investor Ray Dalio said that the governments will do all they can to maintain monopoly control of their money even it if means to outlaw the competition:
“every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control.”
Anthony Pompliano commented on the idea as well and said governments cannot ban BTC but he conceded that a scenario of coordinated global action will make life difficult for BTC users. As crypto continues to make its mark in the world of finance, regulators and policymakers will likely be forced to show their teeth on the matter.
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