July 21, 2024
CBN's eNaira: Not a threat to Nigeria's finance.
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Central Bank of Nigeria Clarifies: eNaira Poses No Threat to Nigeria’s Financial Stability

The Central Bank of Nigeria (CBN) has made a public statement asserting that its eNaira project, one of the world’s pioneer central bank digital currencies (CBDCs), does not pose a threat to Nigeria’s financial stability.

This statement, released on October 9th by the CBN, was prompted by reports circulating in the media that suggested the eNaira could jeopardize the financial stability of Nigeria. Some of these reports, including one featured in the Nigerian newspaper Punch, referenced the CBN’s recent publication titled ‘Economics of Digital Currencies: A Book of Readings.’

Within this report, CBN experts emphasized the gradual increase in eNaira adoption, with it constituting a 0.2% share in comparison to the liquidity of Nigerian banks. They also acknowledged that the funds held by citizens in eNaira wallets are not accessible to commercial banks. The potential risk associated with this observation is the potential shortage of liquidity that could occur within banks if eNaira were to be widely adopted. Nevertheless, such concerns are inherent to the theoretical discussions surrounding any CBDC. In its press release, the CBN does not delve deeply into explanations but merely refutes the claims made in the media and points to the comprehensive insights about CBDCs found in its report.

The CBN’s statement emphasizes that the eNaira’s structure is continually evolving and being adjusted to enhance the user experience across all interfaces. They encourage Nigerians to embrace this technology, particularly for the purpose of greater financial inclusion.

It’s worth noting that a recent global survey, featuring respondents from 15 countries, revealed that Nigeria has the most cryptocurrency-aware population in the world. According to a joint study conducted by ConsenSys and YouGov, 99% of Nigerians possess a higher level of knowledge about Web3 when compared to individuals in major economies such as the United Kingdom, the United States, Japan, and Germany.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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