eNaira: CBN Partners Bitt Inc For Digital Currency

The Central Bank of Nigeria (CBN) has announced the engagement of the global Fintech Company, Bitt Inc., as the Technical Partner for its digital currency, e-Naira.

Mr Osita Nwanisobi, Director, Corporate Communications of the Bank, made this known in a statement on Monday in Lagos, but this development was disclosed in Abuja by the Central Bank Governor, Mr Godwin Emefiele.

Mr. Emefiele said that the selection of Bitt Inc, from among highly competitive bidders, was hinged on the company’s technological competence, efficiency, platform security, interoperability, and implementation experience.

He added that in choosing Bitt Inc, the CBN would rely on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries.

Project Giant, as the Nigerian CBDC pilot is known, has been a long and thorough process for the CBN, with the Bank’s decision to digitize the Naira in 2017, following extensive research and explorations. Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85 percent of Central Banks are now considering adopting digital currencies in their countries.

Emefiele listed the benefits of the CBDC to include: Increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows.

Others are easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.

CBN recently sent a presentation to Nigerian banks about the eNaira project, revealing more details about its design and operational module. The presentation described how the new currency would be designed and operated.

The presentation stated that a limit of N50,000 is in place for Send & Receive, the minimum requirement is the individual’s National Identity Number (NIN), which will be validated. A cumulative balance of N300,000 is fixed each day.

Banks in Nigeria would be able to ask all of their customers to sign up for the e-Naira. In addition to pre-generated codes, banks can issue onboarding invitation codes to a specified group of customers. Customers who have been assigned a code by their banks will be onboarded.