DIGITAL CURRENCY: experts advise central banks on connectivity

By Nkiruka Nnorom

AS the Central Bank of Nigeria (CBN) is preparing to launch the planned digital currency, eNaira, industry experts have advised the CBN and other central banks around the world who are also muted the idea of ​​building flexible structures and durable that work with different countries.

The CBN had returned to the drawing board after postponing the launch of the eNaira originally scheduled for last weekend, citing the clash with the events planned for the country’s 61st independence anniversary.

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Experts spoke at a virtual event hosted by Celo, a global mobile payment infrastructure company, in partnership with global media company Forbes, titled: “The Future of Central Bank Digital Currencies (CBDC ) and cryptocurrency ”.

Jim Cunha, Executive Vice President, Secure Payments and FinTech, Federal Reserve Bank of Boston, underscored the need for central banks to consider privacy in their quest to embrace digital currencies.

“As countries embrace the idea of ​​CBDCs, we need to build flexible and sustainable structures that work with different countries depending on the issues they are trying to solve. We also have to think of “privacy” when we talk about CBDC, ”he said.

Also speaking, Aliu Musa, Ecosystem Manager for Celo in Nigeria, said that the launch of the eNaira website by the Central Bank of Nigeria is a step in the right direction and “we hope to see more central banks as well as Other players in the central banking space are starting to test various models and prototypes of CBDCs, whether they are account-based or token-based.

“Account-based CBDCs work like digital bank accounts, but the accounts are held by the central bank rather than a commercial bank. The value is equivalent to the account balance, and the main concern is identification, which will correctly link payers and payees, and verify that the payor has sufficient funds to complete the transaction.

About Ruben V. Albin

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