CBN Reportedly Planning Digital Naira amid Bitcoin Crackdown

Central Bank of Nigeria (CBN) is planning on launching a digital version of the Nigerian Naira.

According to Nairametrics, this was made known by Godwin Emefiele, governor, CBN at the 279th monetary policy rate (MPR) meeting.

This comes against the backdrop of February’s directive issued by the central bank instructing banks and payment processors in Nigeria to suspend crypto services to customers.

Emefiele said that the nation’s central bank is committed to making the digital naira a reality.

The CBN boss tried to justify the bank’s recent directive outlawing crypto by linking Elon Musk’s tweets to the recent crash in prices.

Speaking on the reasons guiding the bank’s decision, the Nigerian banker said:

“We have carried out our investigation, and we found out that a substantial percentage of our people are getting involved in cryptocurrency, which is not the best. Don’t get me wrong; some may be legitimate, but most are illegitimate.”

For many crypto professionals in Nigeria, this is a step in the right direction.

Hakeem Disu, Founder of bitcoin exchange Koinwa, told Inside Bitcoins, why he thinks things could get better for the crypto sector in Nigeria. Disu said,

“The U.S is also considering a digital dollar, but none of these CBDCs can replace Bitcoin. Now that the CBN is considering the Digital Naira, we should expect a reversal of the ban soon.”

Chike Okonkwo, who oversees strategic partnerships at crypto management firm THRESHOLD told Inside Bitcoins that “Bitcoin has come to stay in Nigeria.” He believes a digital Naira would be beneficial for the industry, as a whole, if done properly.

Others like Victor Asemota, who serves as a partner at Israeli-based Venture Capital firm AnD Ventures, believe a digital naira would end the cycle of corruption in Nigeria. He said:

“This will actually reverse a lot of things. Imagine the Federal Allocation being given as StableCoin? Wherever it goes, the CBN can track. This will eliminate state corruption. Whoever convinced them deserves a Nobel Prize. My guess is that it is @CarmelleCadet Folded hands”