The Central Bank of Nigeria and People’s Bank of China $2.5billion currency swap deal and the blockchain
The Central Bank of Nigeria (CBN) and People’s Bank of China (PBoC) have negotiated and agreed to by-pass the United States dollar as the international trade settlement currency between the two countries Nigerian and People’s Republic of China (PBoC). They have instead chosen to swap each other’s non-backed, sovereign fiat paper currencies Naira and Renminbi in a deal worth USD2.5BILLION to settle trades for a period of three years renewable, subject to any further mutual consent agreement between the parties.
This White Paper looked through the legacy banking settlement infrastructure and the distributed and decentralised ledger system for payment and settlement, with the attendant merits and benefits to diversify in innovative various ways. In conclusion the paper recommends that because of the benefits inherent in the distributed ledger technology systems, the Central Bank of Nigeria (CBN) should come up with its own blockchain technology, build a Proof of Concept (PoC) to test out, or team up with any of the extant enterprise blockchain infrastructures to build out useful Decentralised Application (D’App) implemented with the smart contract technology.