The Central Bank of Nigeria (CBN), in collaboration with the Nigeria Deposit Insurance Corporation (NDIC), has set up a committee to study digital currency bitcoin, Nigeria Today reported.

Speaking at workshop for Business Editors and Finance Correspondents organised by the NDIC in Kaduna State, Umaru Ibrahim, managing director/CEO, NDIC, said that the committee will study the advantages and disadvantages of bitcoin as well as its potential as a payment method.

“Another phenomenon emerging in the banking and financial landscape, is the emergence of what is known as bitcoin. I understand that a lot of people have started to patronize bitcoin”, he said. “On our part we have constituted a committee together with Central Bank to have an in depth study of this phenomenon, looking at the advantages and disadvantages, what it means for the payment  system, safety and security of customer, money laundering, point of correction, guide or measurement of quantum of money or near money instrument, and the economy”.

This is a positive development for bitcoin users and businesses in the country. Last year, the CBN called for regulation of virtual currencies in a bid to save the country from money laundering.

More recently, reports suggested that the CBN decided to close bank accounts of anyone in Nigeria dealing with bitcoin, The Merkle reported. The Central Bank of Nigeria stated:

“As you are aware, the virtual currency market is an unregulated market in Nigeria and based on recent communications with the CBN and our risk appetite as a Bank, we have decided to cease dealings with dealers in virtual currencies until such a time when the market becomes regulated.”

Ibrahim emphasized on the need for bitcoin education, including its underlying blockchain technology and related products in the market.

“Some of the central banks have also adopted it and are seriously doing everything possible to bring in the emergence of this invisible products. The owners do not need any central bank; they do not need any physical bank. If you are a subscriber, you only know yourselves and they give you a bit of the bitcoin and in some countries you can convert it to cash. You can make payments with it because it has been recognised and one of the famous ex-chief executive of Barclays PLC, Antony Jenkins, have joined the groups board of directors,” Ibrahim said (as quoted by Vanguard).