Central Bank of Nigeria says eNaira poses no danger to the country’s financial system

In reaction to “news items on some media platforms,” the Central Bank of Nigeria released a press statement denying that the eNaira poses a danger to the country’s economy.

As one of the world’s first functioning central bank digital currencies (CBDC), the eNaira project required public reassurances from the Central Bank of Nigeria (CBN) that it would not compromise Nigeria’s economic security.

In light of “news items on some media platforms,” the CBN issued a statement on October 9 addressing concerns that the eNaira may destabilize Nigeria’s economy. An article in the Nigerian daily Punch references a new research from the Central Bank of Nigeria (CBN) titled “Economics of Digital Currencies: A Book of Readings.”

Experts from the CBN emphasize the progressive increase of eNaira usage in the paper, which now accounts for 0.2% of the liquidity in Nigerian banks. The government also recognizes that commercial banks are unable to access the eNaira stored in people’ wallets. Total adoption of the eNaira presents a conceivable concern due to the banks’ potential shortage of cash. But theoretically speaking, such apprehension is central to the debate of any CBDC.

The CBN doesn’t provide any context for its publication, sticking to a simple denial of the media’s assertions and a reference to the “in-depth understanding of CBDCs” included in its research.

The eNaira architecture is constantly changing to enhance the user experience across all interfaces. We hope that more Nigerians would use this technology so that they may have better access to the banking system.

According to a recent international poll with participants from 15 different nations, Nigerians are the most cryptocurrency-savvy people in the world.

ConsenSys and YouGov found that 99 percent of Nigerians knew more about Web3 than persons in the United Kingdom, the United States, Japan, or Germany.

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