CBN Debunks Claims About eNaira Threatening Nigeria's Financial Stability
Summary:
The Central Bank of Nigeria (CBN) has publicly declared that its digital currency project, eNaira, does not pose a threat to Nigeria's financial stability. This statement was made in response to media reports suggesting otherwise. The CBN also stated that ongoing enhancements are being made in the eNaira infrastructure to improve user experience and urged Nigerians to utilize this technology for greater financial inclusion. A global survey found that Nigeria has the world's most cryptocurrency-aware population, known more about Web3 technology than major economies like the UK, US, Japan, and Germany.
The Central Bank of Nigeria (CBN) has been compelled to assert in public that its initiative, one of the globe's initial operating central bank digital currencies (CBDC), does not undermine Nigeria's economic stability. This response from the CBN, published on October 9, addressed "media reports" that suggested the eNaira could potentially disrupt Nigeria’s financial equilibrium. Some articles, such as one in the Nigerian daily, Punch, refer to a report recently released by the CBN entitled "Economics of Digital Currencies: A Book of Readings." The report, penned by CBN specialists, underscores the incremental rise in eNaira adoption, represented by a 0.2% slice of the liquidity pie held by Nigerian banks. It also concedes that money stored in eNaira wallets by Nigerians cannot be leveraged by commercial banks. A hypothetical threat stemming from this understanding is the liquidity crisis that could hit the banks if there was a widespread take-up of eNaira. Yet, such anxieties are core theoretical issues of the debate on any proposed CBDC. In its public statement, the CBN refrained from elaborating, instead outrightly denying the reports in the media, referencing the "comprehensive knowledge of CBDCs” included in its own report: “Development and refinements to the eNaira infrastructure are ongoing, with the intention of enhancing user experience across all platforms. We urge Nigerians to utilise this technology to, among other benefits, promote extensive financial inclusion.” A current international survey, receiving input from participants across 15 nations, found that Nigeria has the world's highest population aware of cryptocurrency. In line with a joint report by ConsenSys and YouGov, a striking 99% of Nigerians have a better comprehension of Web3 than populations in major economies such as the UK, US, Japan, and Germany.
Published At
10/11/2023 8:11:25 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.