Central Bank

As digital payment tools become increasingly widespread, traditional finance is also seeking to create a worthy alternative to the existing means. That is why numerous countries are exploring the potential of Central Bank Digital Currency (CBDC).

As the interest in cryptocurrency is seemingly increasing in Africa more than in some of the globe’s developed economies, the Central Bank of Nigeria (CBN) has come out to embrace this nascent fintech by saying that Bitcoin and cryptocurrency businesses in Nigeria are not banned at all.

The Nigerian Central Bank has paid notice to the Country’s Vice President positive advice on cryptocurrency. The Central Bank which recently banned cryptocurrency in the Country was criticized by Vice President Yemi Osinbajo who preferred regulating cryptocurrency to banning its use in the country.

Many countries are shifting towards introducing their own state-backed digital currencies. Central banks are exploring the potential of CBDCs. But is this effort really a good move on the rest of private coins including Bitcoin, Ethereum, and XRP?

Kenya, through its central bank, has lately announced a controversial move to employ bitcoin as a reserve currency in a bid to improve the country’s economic performance. However, whether or not this shift will serve the intended purpose remains a matter of debate.

The COVID-19 pandemic has opened the eyes of many central banks and has now taken a route of fintech innovation. Some of the major tools being currently looked at is introducing central bank digital currency (CBDC) into the finance and banking industry. But the main question is how these new forms of digital currencies impact the economy.