Central Bank of Nigeria to Pilot CBDC on the Hyperledger Fabric Blockchain

On October 1, the Central Bank of Nigeria is most likely to pilot a CBDC project which runs on the Hyperledger Fabric Blockchain. Though the CBN has been in the headlines for its anti-crypto measures, it has reportedly doubled its investment and research into the underlying technology of cryptocurrencies, Blockchain.

Central Bank of Nigeria Launches Scheme for CBDC Project

As recently reported by the Central Bank of Nigeria, the bank will be launching a pilot scheme for a Central Bank Digital Currency project, GIANT, that has been in the stages of development since 2017.

GIANT runs on the Hyperledger Fabric blockchain, which is an open-source blockchain.

The information technology director of CBN, Rakiya Mohammad, said there are chances that the bank might conduct a proof of concept before the end of the year 2021.

In addition to this, it should be noted that the representatives of the Central Bank of Nigeria laid an emphasis on the non-affordability of the institution being left behind in a webinar conducted this week with the stakeholders.

The bank noted that a CBDC is going to be advantageous for cross-border trade assistance, macro and growth management, and financial inclusion. 

Bank of Ghana Next in Line for CBDCs

The Central Bank of Nigeria is not the only one in line with piloting its own Central Bank Digital Currency, it is accompanied by the Bank of Ghana.

Ghana has stationed itself as a pioneer in the development of the central bank digital currency on the continent and contemplates central bank-issued digital currencies to be loftier and less risky than crypto assets that are decentralized.

However, the fact that the measures of Nigeria were far more aggressive than that of Ghana can not be ignored, and this even includes a ban on the commercial banks and other financial institutions from providing services to the crypto exchanges.