Central Bank of Nigeria Cites Ripple in its Latest Report on CBDC

The Central Bank of Nigeria (CBN), the prominent regulator for financial service institutions in the country, has recently mentioned Ripple, a blockchain payment firm based in San Francisco, in its latest report discussing the implications of Central Bank Digital Currencies (CBDCs).

CBN Report Reveals CBDC Prominence

The report by the CBN is an extensive compilation of studies that delve into different aspects of CBDCs. Its primary objective is to provide professionals and the general public with a comprehensive understanding of the economic implications of CBDCs.

Furthermore, the apex bank recognizes the need for transparency and education surrounding CBDCs as they are poised to reshape the future of money. The CBN’s study also revealed that central banks are exploring digital currencies due to the growing expectation regarding issuing government-regulated tokens amid the increasing dominance of privately controlled cryptocurrencies. 

Notably, the report revealed that 85% of financial industry leaders worldwide believe their countries will introduce digital tokens as soon as they can. This is because CBDC has attracted global attention

Nigeria’s Plan for CBDC

Recall that the CBN took a step forward in July this year to encourage the use of e-Naira, its central bank’s digital currency. In the past, there have been doubts about Nigeria’s CBDC success, nonetheless, the country has worked hard to introduce the eNaira after receiving authorization from the Federal High Court.

There has also been the integration of QR codes to boost the adoption rate of the e-Naira. The deputy director of the CBN’s risk management department Joseph Angaye mentioned that the banking regulator is committed to leveraging innovative technology to improve users’ experience.

He announced that the e-naira would be furnished with some programmability features that could limit CBDC payments exclusively to designated government programs, and in return, reduce the risk of fraud.

Mobile Banking Feature For e-Naira

So far, the CBDC project has undergone several upgrades and integration to make it easier for Nigerians to navigate. Last year, the use of Unstructured Supplementary Service Data (USSD) on mobile phones for e-Naira transactions was introduced for users. 

Those with bank accounts can also complete e-Naira transactions by using NIBSS Instant Payment (NIP). At the time, Governor Emefiele explained that “Nigerians, both banked and unbanked, will be able to open an eNaira wallet and conduct transactions by simply dialing *997# from their phones.”