More than a year after launching the Central Bank Digital Currency with partner Bitt Inc, the Central Bank of Nigeria is reportedly seeking a new technology partner. The new partner is expected to help the central bank implement a system that would give it more control over the digital currency. One expert said the central bank should consider improving the user experience if it wants more Nigerians to adopt e-naira.
E-naira’s underlying technology controls
The Central Bank of Nigeria (CBN) is looking to implement a new system to run the Central Bank Digital Currency (CBDC) and is currently talking to prospective technology partners,
reports According toCentral banks are keen to develop digital currency technology, which could give them greater control over CBDCs.
enterprise technology and services provider R3 is one of the prospective partners reportedly discussing deploying another technology for e-naira. According to the report, the partner chosen by the CBN is not expected to immediately oust the central bank’s first technology partner, Bitt Inc. Instead, the central bank expects the new partnership to help it achieve its goal of controlling CBDC’s underlying technology.
While there has been no official comment on CBN’s plans, Bitt Inc has reportedly acknowledged that the Nigerian central bank is “working with various service providers to explore innovations for digital infrastructure.” Despite this, the Barbados-based technology firm said it is still working closely with the CBN and is “currently developing additional features and enhancements.”
Lucky Uwakwe Arisukwu, CEO of Sabi Group, a technology hub for the fourth industrial revolution, agrees that the CBN’s reported plans may be primarily motivated by the central bank’s desire to control digital currencies. In support of this view, Uwakwe referred to the recently launcheddomestic card systemcalled Afrigo.
Like e-naira, Afrigo aims to strengthen Nigeria’s domestic payment system and promote the use of electronic platforms; the CBN governor denied claims that the card scheme seeks to drive out international service providers Uwakwe, however, insisted that the scheme could not have been launched without the central bank having control, and according to Uwakwe, the CBN wants to apply the same approach to e-naira.
E-naira Enhancement
{33} Despite being the only functioning CBDC in Africa, e-naira uptake has been slow, with Bitcoin.com News reporting in August 2022 that just under 1 million e-naira speed wallets at the time were had only been downloaded. The lukewarm response of the Nigerian public at the time reportedly led the CBN to look for ways to get more Nigerians to use the service.