The Central Bank of Nigeria has taken the next step in its plans to establish a digital currency in the country.

The bank reports it has has entered into a technical partnership with Barbados-based fintech company Bitt Inc to launch the eNaira, which will operate as a digital wallet, later this year.

The partnership forms part of the bank’s broader plan of stepping up cross-border trade, and improving financial inclusion and remittance inflows. It is expected that the eNaira will also strengthen the efficacy of monetary policy, payment systems and tax collection.

Once the currency is in circulation, customers will be able to use their digital wallets linked to existing funds in their individual bank accounts, Reuters reports.

The eNaira, also referred to as the Central Bank Digital Currency (CBDC) or Project Giant, has been in the pilot-study phase since the bank decided in 2017 to digitalise the naira. Bitt Inc will provide technical experience earned while introducing digital currencies in the Eastern Caribbean.

7 September 2021
Image: Gallo/Getty Images