The Central Bank of Nigeria (CBN) has secured the services of Barbados-based digital financial technology firm, Bitt Inc, as technical partner for its e-Naira project due for unveiling before the end of the year.

Locally, the Bank of Jamaica (BOJ) went to Europe to select technology provider eCurrency Mint from Ireland for help with its CBDC currency, due for distribution this month through National Commercial bank.

A central bank source, who did not want to be quoted, said the BOJ did not opt for a cryptocurrency solution, as such cannot be regulated. The BOJ, which began a pilot roll-out in May 2021, is targeting 2022 for national roll-out of the digital currency.

Bitt, which has operations in several Caribbean nations, uses blockchain and distributed ledger technology to facilitate mobile money transactions, making use of its proprietary software and mobile applications.

Director, corporate communications, Osita Nwanisobi, said in a press statement that the governor of the central bank, Godwin Emefiele, disclosed the decision, in Abuja this week.

The governor said benefits of the e-Naira would include increased cross-border trade and accelerated financial inclusion. Comparably, the BOJ’s digital currency will not be used in cross-border transactions.

The Government of Nigeria statement said the firm was chosen through a highly competitive bidding process and selected for “ its technological competence, efficiency, platform security, interoperability, and implementation experience.”

Bitt Inc developed and launched the central bank digital currency (CBDC) pilot of the Eastern Caribbean Central Bank (ECCB) in April 2021.

The Nigerian Central Bank Digital Currency (CBDC), codenamed Project Giant, started in 2017, after what the CBN described as “extensive research and explorations”.

One report notes that previously, the Nigerian Central Bank banned financial institutions from processing cryptocurrency-related transactions, but Nigerian youths persisted as leading investors in the assets.

The turnaround is said to have arisen “following the significant explosion in the use of digital payments and the rise in the digital economy with over 85 per cent of central banks contemplating CBDCs,” it was noted.