In response to reports circulating in various media outlets, the Central Bank of Nigeria has addressed concerns regarding the eNaira and its potential impact on the country’s financial stability. This statement was officially released on October 9.
The Central Bank of Nigeria (CBN) made it abundantly clear that its eNaira project, a groundbreaking central bank digital currency (CBDC), does not pose a threat to the stability of Nigeria’s financial system.
The CBN’s press release was a direct response to news items circulating on various media platforms. These reports had raised concerns about how the eNaira might affect Nigeria’s financial stability.
Notably, an article in the daily Nigerian newspaper, Punch, made specific reference to the CBN’s recently published report titled “Economics of Digital Currencies: A Compilation of Readings.”
Within this report, Central Bank of Nigeria experts highlight the gradual increase in eNaira adoption. This adoption, at present, accounts for just 0.2% of Nigerian banks’ liquidity. Moreover, they recognize that the funds held in eNaira wallets by citizens are not accessible to commercial banks.
Furthermore, the concern stemming from this observation pertains to the potential liquidity shortage that banks might face in the event of widespread eNaira adoption.
However, it’s essential to emphasize that this concern remains a fundamental and theoretical aspect. It’s integral to the broader discussion about central bank digital currencies.
Central Bank of Nigeria: Leading eNaira’s Evolution and Nigeria’s Cryptocurrency Expertise
In its official statement, the CBN avoids delving into extensive explanations. Instead, it unequivocally refutes the claims put forth in the media. The statement alludes to the comprehensive understanding of CBDCs as outlined in its report:
“The eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces. We encourage Nigerians to embrace the technology for, amongst other things, greater financial inclusion.”
A recent international survey has brought to light the cryptocurrency expertise within Nigeria. This survey included respondents from 15 nations. It indicates that Nigeria has the most cryptocurrency-savvy population on a global scale.
According to a collaborative study by ConsenSys and YouGov, a remarkable 99% of Nigerians exhibit a more profound understanding of Web3 technology. This understanding surpasses that of individuals in major global economies like the United Kingdom, the United States, Japan, and Germany.
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