Global First: Nigeria's Central Bank Affiliate, NIBSS, Joins Zone’s Blockchain Network
20 Agosto 2024 - 5:28AM
In a move that signals a significant shift in the global financial
landscape, the Nigeria Inter-Bank Settlement System (NIBSS), a
payments clearing house primarily owned by the Central Bank of
Nigeria, has joined Africa’s first regulated blockchain network for
payments, built by Nigeria’s decentralised payment infrastructure
company Zone. This partnership marks one of the world's first
instances of regulatory participation in a private blockchain
consortium, potentially redefining how financial regulations and
decentralisation intersect on a global scale.
The partnership involves NIBSS utilising Zone’s blockchain
network to enhance its Payment Terminal Service Aggregation (PTSA)
operations. PTSA is a regulatory oversight function in Nigeria
assigned to NIBSS and requiring all payments made at Point-of-Sale
(PoS) terminals to pass through an aggregator before reaching the
cardholder’s bank for authorization. This arrangement ensures
enhanced oversight and compliance with the Central Bank of
Nigeria’s payment standards. This unprecedented move to adopt
blockchain demonstrates NIBSS’s progressive and innovative
disposition, which became evident when NIBSS launched one of the
world’s first instant funds transfer services back in 2013. Hosting
a Blockchain node on the Zone Network and deploying relevant smart
contracts will allow NIBSS to decentralise its PTSA function which
will eliminate the existing central failure point in transaction
routing while preserving and even enhancing the regulatory
monitoring and reporting capabilities required by the CBN guideline
on PTSA.
Zone’s blockchain network has some of Africa’s biggest Banks as
members, and offers several key advantages, such as decentralized
routing, which enables direct exchange of financial messages
between participating Banks without an intermediary. Additionally,
the network facilitates real-time settlement, ensuring instant
transaction finality and immediate value for each successful
transaction. The automated reconciliation feature of Zone’s network
leverages the transparency and consistency of Blockchain to
continuously reconcile counterparties and preemptively resolve
potential customer disputes in real-time.
This development represents a significant step towards the
integration of blockchain technology into mainstream finance,
potentially inspiring similar moves by regulatory bodies worldwide.
NIBSS's direct involvement on Zone’s blockchain network
demonstrates a new model for regulatory oversight, allowing
real-time monitoring and more efficient compliance enforcement. The
partnership underscores the growing acceptance of blockchain
technology in traditional financial services and highlights the
potential for blockchain to gain regulator buy-in but also enhance
regulatory functions and achieve mainstream adoption on a global
scale.
Premier Oiwoh, MD/CEO of NIBSS, commented: “These partnerships
and collaborations with key industry players represent a
significant milestone in our mission to drive innovation and
enhance the efficiency of the payment system. The strategic
alliances will revolutionize the ecosystem, offering improved
operational efficiency, cost savings and enhanced financial
inclusion, ultimately positioning Nigeria at the forefront of the
global payment space.”
Obi Emetarom, CEO and Co-founder of Zone, stated: “This
partnership with NIBSS is a testament to the transformative power
of blockchain technology in payments and more generally in the
financial sector as a whole. It demonstrates how blockchain
technology can enhance regulatory oversight functions while
simultaneously streamlining operations for service providers and
delivering delightful experiences to end-users.”
As the world moves towards more digital and decentralized
financial systems, this partnership stands as a landmark example of
how traditional financial institutions and new innovative
technologies can work together to shape the future of finance. The
fact that an affiliate of a Central Bank is joining a Fintech-led
blockchain consortium as well as other trends like CBDC pilots and
Bank-led Blockchain initiatives around the world, hint at the
inevitable impact of blockchain on the way people will manage money
in the future.
About NIBSSThe Nigeria Inter-Bank Settlement
System (NIBSS) is the backbone of the Nigerian financial system,
providing interbank payments and settlement solutions. NIBSS is
committed to facilitating secure and efficient payment systems,
contributing to the stability and growth of Nigeria's financial
sector.
About ZoneZone is a regulated blockchain
network that enables payments and acceptance of digital currencies.
Its Layer-1 Blockchain network digitises Fiat payments and enables
the transition to digital currencies while connecting previously
excluded financial institutions into an all-inclusive payment
ecosystem. Zone, Africa’s first decentralised payment network,
allows participating institutions to connect directly with each
other and perform payment transactions without an intermediary
while completely automating settlement, reconciliation, and dispute
management. The Company is working with the brightest minds on the
continent to lay the foundation for the decentralised future of
financial services. Its mission is to connect every monetary store
of value by harnessing the power of blockchain.
Contact: oosoba@zonenetwork.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1c71b90d-ade3-4015-b5bf-1f11ea3465ef