The Central Bank of Nigeria (CBN) on October 9, addressed the burgeoning apprehensions surrounding the stability of the nation’s economy in light of the escalating usage of eNaira, one of the world’s pioneering Central Bank Digital Currencies (CBDC). The bank’s response came in the wake of a surge in eNaira adoption, which, while gradual, has sparked debates and concerns among economic analysts and the public alike.
Moreover, in its statement, the CBN robustly refuted claims and concerns circulating in the media, particularly those highlighted by Punch, a prominent Nigerian daily newspaper. The media outlets referenced the CBN’s recent research, “Economics of Digital Currencies: A Book of Readings,” spotlighting the nuanced dynamics between digital currencies and economic stability.
However, while acknowledging the gradual increase in eNaira usage compared to the liquidity of Nigerian banks, the CBN noted that the scenario where commercial banks might run out of cash due to a nationwide switch to eNaira remains purely hypothetical. Additionally, the bank admitted that money stored in eNaira wallets is inaccessible to commercial banks, which has fueled the ongoing discourse about the potential economic implications of widespread CBDC adoption.
Significantly, the CBN opted not to delve deep into contextual explanations in its press statement. Instead, it countered the media narratives by pointing towards the comprehensive insights into CBDCs encapsulated in its research. Consequently, the bank reassured the public and stakeholders that the eNaira system architecture is perpetually being refined and efforts are being intensified to enhance user experience across all interfaces.
Besides, the CBN remains hopeful that adopting this technology will successfully usher more Nigerians into the financial mainstream, aligning with the country’s broader economic objectives.
According to a recent international survey by ConsenSys and YouGov, which involved participants from 15 countries, Nigeria boasts the world’s most cryptocurrency-aware population. A staggering 99% of Nigerians reportedly exhibit more familiarity with Web3 than their counterparts in major economies, including the United Kingdom, the United States, Japan, and Germany.
