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Nigeria's central bank will work with Bitt as a technical partner in its bid to launch the country's cryptocurrency, the "eNaira" later this year.
The eNaira would operate as a wallet where customers can hold existing funds in their bank account, according to Central Bank Governor Godwin Emefiele.
It would also accelerate financial inclusion and enable cheaper and faster remittance inflows.
Nigeria barred banks and financial institutions from dealing in or facilitating transactions in cryptocurrencies in February.
The Barbados-based Bitt led the development of the Eastern Caribbean Currency Union's "DCash", the first digital cash issued by a central bank.
