E-Financial
Some Africa’s Central Banks Consider Exploring Digital Currencies
Three African countries participated for the first time in a Bank for International Settlements (BIS) survey that shows about a fifth of the world’s central banks are likely to issue their own digital currencies in the next three years.
Central banks from Madagascar, Mozambique and Tanzania joined the BIS annual central bank digital currencies (CBDCs) survey to increase Africa’s tally in the total 65 apex banks that took part in the 2020 version released this week.
They join the likes of Cape Verde, Egypt, Eswatini, Morocco and South Africa, which have been involved in the assessment in the past.
“During the course of 2020, work on CBDCs continued apace amid the Covid-19 pandemic. The vast majority of central banks in the survey – 86% – are now exploring the benefits and drawbacks of CBDCs,” states the BIS, which serves as a bank for central banks.
Its latest report shows that most central banks are exploring CBDCs (about 60% of central banks up from 42% in 2019) and moving into more advanced stages of CBDC engagement (14%), progressing from conceptual research to practical experimentation, as interest in CBDCs continues to be shaped by local circumstances.
It also points out that central banks from emerging markets and developing economies have relatively stronger motivations to issue a CBDC as financial inclusion and payments efficiency objectives drive top the general purpose for their CBDC work.
Meanwhile, even as the tally rises, no African country has officially confirmed it has concluded plans to issue a CBDC.
E-Financial
NDIC Gets Court Order, to Wind Down 96 Microfinance, Mortgage Banks
Nigeria Deposit Insurance Corporation (NDIC) has said that it has obtained Winding up Orders for 96 out of 183 microfinance and primary mortgage banks whose licenses were revoked by the Central Bank of Nigeria (CBN) in May 2023.
Bello Hassa, managing director, NDIC, stated this at a sensitisation seminar for Judges of the Federal High Court in Lagos organised by the NDIC, to enlighten the judiciary on the intricacies of the banking industry.
Hassan said, “As at date, the Corporation had obtained Winding up Orders for 96 out of 183 Micro Finance and Primary Mortgage Banks whose licenses were revoked by the CBN in May 2023, in less than one Year of revocation.”
He added that the NDIC was committed to fulfilling its mandate of protecting depositors through bank supervision, failure resolution and liquidation so as to boost confidence in the financial system.
Speaking on the role that the judiciary plays in the fulfillment of the mandate, Hassan said, “We recognise the judiciary as one of our critical stakeholders. With this, when cases are brought before them, they can receive accelerated hearing and proclamation of Justice.”
Citing some of the achievements from previous editions of the seminar, Hassan said that instances where liquidation-related litigations experienced delays were reduced.
E-Financial
CBN Finally Makes U-turn, Withdraws Circular on Cybersecurity Levy
Central Bank of Nigeria (CBN) has withdrawn its earlier circular directing financial institutions to implement the national 0.5 per cent cyber security levy after the policy was largely resisted.
The withdrawal of the circular was announced via a statement signed by Haruna Mustafa, director, Financial Policy and Regulation, Department and Chibuzo Efobi, director, Payment System Management Department.
The apex bank confirmed the suspension in a circular issued on May 17, 2024 with reference number PSMD/DIR/PUB/LAB/017/005 addressed to commercial banks, mobile money operators, and other financial institutions.
In an earlier circular issued on May 6, 2024 with reference PSMD/DIR/PUB/LAB/017/004, the bank mandated financial institutions to charge a 0.5 per cent levy on all electronic transactions.
President Bola Tinubu last week ordered the suspension of the National Cybersecurity levy.
E-Financial
ABCON, SEC Partner on Digital Currency P2P FX Sector Harmonization
The Association of Bureau De Change Operators of Nigeria (ABCON) has called for the Securities and Exchange Commission (SEC) guidance and collaboration in harmonising the peer-to-peer forex sector in the country.
At an official courtesy visit to the newly appointed SEC Director-General, Dr. Timi Agama, the President of Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, who congratulated the SEC D-G on his appointment, observed that SEC regulates the sector that continues to threaten the existence of BDCs in Nigeria through online virtual transactions platforms which give access to millions of Nigerians to trade in foreign exchange without trace and accountability.
He also explained that ABCON has invested in requisite technology to ensure the continued existence of the business and the preservation of the integrity of the sub-sector, stressing that the future of BDC’s business was digital currency. The ABCON boss said that the meeting with the SEC DG and his executive board was a follow up to an earlier online virtual consultation.
Gwadabe explained that ABCON, the umbrella body for all licensed retail foreign exchange dealers, was established in 1991 to liaise with regulators, relevant stakeholders and security agencies for a transparent retail end forex market.
Gwadabe said: “As at today, there are over 34 million Nigerians dealing in digital currency and the number is rising by about nine percent with a huge market of $9 billion annually. There are thousands of multichannel virtual currency FX platforms and none is indigenous to Nigeria, adding that P2P represents individual-to-individual transaction.
“To automate the entire foreign exchange retail market, ABCON has partnered with the Commodities Exchange Board in building the platform knowing that they have sources of foreign exchange. ABCON is willing to work with SEC towards achieving full automation of the retail end of the foreign exchange market in Nigeria.
- Telecom3 days ago
NCC Temporarily Suspends Issuance of New Licenses
- News3 days ago
Afreximbank Deepens Ties On $350m Project Support Facility
- News3 days ago
TI-Nigeria Boss Alleges Nigerian Banks Offer Opportunities for Terrorism Tinancing
- Telecom3 days ago
Cable Cuts Expose Vulnerabilities in Africa’s Internet Infrastructure
- Telecom3 days ago
Nigeria’s Omoniyi Ibietan, elected Secretary-General of APRA
- E-Financial3 days ago
Crypto Exchanges Begin Delisting Naira from P2P Platforms- SEC
- News3 days ago
Court Denies Binance Executive Tigran Gambaryan Bail
- E-Financial18 hours ago
NDIC Gets Court Order, to Wind Down 96 Microfinance, Mortgage Banks