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Central Bank of Nigeria: digital naira is not in demand among residents of the country

Bits.media / 30.07.2024 / 20:18
Central Bank of Nigeria: digital naira is not in demand among residents of the country
The Central Bank of Nigeria (CBN) has reported that the digital Nigerian Naira (eNaira) is in little demand among citizens due to the lack of significant advantages over conventional naira.

Three years after the launch of eNaira, the turnover with this digital currency of the central bank (CBDC) is only about 0.36% of the total volume of the state currency in circulation. By the end of the first quarter, the number of eNaira, which reached 13.98 billion coins, increased by 1900% compared to the month of launch, October 2021.

The Central Bank of Nigeria tried to increase interest in its own digital currency by offering bonuses to citizens of the country and sellers willing to accept CBDC. In the first quarter, the Central Bank announced a partnership with technology firm Gluwa, confident that this collaboration will improve the functionality of CBDC and contribute to the development of financial innovations.

The chairman of Tekedia Capital, Ndubuisi Ekekwe, believes that eNaira has not been widely distributed among the population, because it does not offer people real advantages. Even with digital wallets, virtual accounts, USSD codes and other options, eNaira's real contribution to the development of the Nigerian economy remains small. The Central Bank's digital currency does not bring people more money than the traditional naira, the expert explained.

Obinna Iwuno, President of the Nigerian Blockchain Association (SiBAN), explained the slow implementation of eNaira by the fact that Nigeria became one of the first countries in the world to launch a state-owned stablecoin. Therefore, the authorities did not have enough knowledge on how to increase interest in the central bank's digital currency.

Nigerians' attitude towards CBDC contrasts with their enthusiasm for cryptocurrencies. In June, Chairman of the Securities and Exchange Commission of Nigeria (SEC) Emomotimi Agama reported that 33% of the country's residents regularly use digital assets, and by 2028, the volume of the Nigerian crypto market could reach $52.5 million.

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