The Central Bank of Nigeria (CBN) recently announced the formal engagement of the global Fintech company, Bitt Inc., as the Technical Partner for its digital currency, named eNaira, which is due to be unveiled later in the year.
Bitt is a Financial Technology company that utilizes blockchain and distributed ledger technology to facilitate secure peer-to-peer transactions with seamless mobile money across a suite of Bitt’s Software and Mobile Applications.
In choosing Bitt Inc, the CBN relies on the company’s tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries. Bitt Inc was key to the development and successful launch of the central bank digital currency (CBDC) pilot of the Eastern Caribbean Central Bank (ECCB) in April 2021.
Bitt Inc contributed to the development of the Caribbean’s first fintech legislation by fulfilling the requirements for the regulatory sandbox with the Central Bank of Barbados and the Financial Services Commission of Barbados.
It signed a major contract with the Eastern Caribbean Central Bank to pilot the world’s first digital currency on the blockchain.
“We embody integrity. These are not mere words, we operate with the highest ethical principles. Our integrity penetrates every aspect of our business, without exception. We pursue excellence in everything we do. We love what we do and we are passionate about it. We give of our best and are dedicated to being a leader in developing the best financial technology products and services in the world.
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“We value our clients and put them first. We are building productive, strong, long-term partnerships with our clients. We know that without you, we would not exist. We know that we are responsible and accountable for our actions. We choose to have a positive impact by conducting business in the most prudent manner at all times”, Bitt Inc said.
On a mission to create payments systems for citizens, merchants, banking institutions and central banks that promote social inclusion, financial empowerment and economic growth for this and future generations, Bitt Inc also said one of its core values is to enhance its clients’ lives through innovation. “We use our agility and ingenuity to create technology solutions that overcome challenges and deliver value,” according to the global Fintech Company.
“A digital transformation of the flow of money is a natural evolution from the current inefficient and risky dependence on physical cash, to a more efficient and secure digital payment system. By harnessing the potential of DLT and blockchain technology, it is possible for central banks to make this transformation”, it noted.
Among others, Bitt said its Central Bank Management Panel software is designed to provide real-time detailed information and reports on transaction activity including number of transactions, speed of transactions, and velocity of circulation of money.
This gives the Central Bank the ability to accurately monitor the effect of monetary policy actions and make adjustments accordingly. Further to this, “an interest-bearing CBDC could provide a secure store of value, with a rate of return in line with other risk-free assets, such as short-term government securities. The CBDC interest rate could serve as the main tool for conducting monetary-policy”.
The formal engagement of Bitt Inc was disclosed in Abuja by the Governor of the Central Bank, Godwin Emefiele, who listed the benefits of the Central Bank Digital Currency (CBDC) to include increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection.
Project Giant, as the Nigerian CBDC pilot is known, has been a long and thorough process for the CBN, with the Bank’s decision to digitize the Naira in 2017, following extensive research and explorations. Given the significant explosion in the use of digital payments and the rise in the digital economy, the CBN’s decision follows an unmistakable global trend in which over 85 percent of Central Banks are now considering adopting digital currencies in their countries.
The CBN said its selection of Bitt Inc, from among highly competitive bidders, was hinged on the company’s technological competence, efficiency, platform security, interoperability, and implementation experience.