CBN persuades Nigerians to use CBDC over cryptos

CBDC – In view of the October 1, set for the release of pilot phase of the CBDC, the Central Bank of Nigeria has urged citizens to embrace the digital currency citing its benefits to the economic populace.

Recall, the apex bank noted it’ll develop and release a digital currency weeks back, and according to experts this may not be unconnected with its aim to further destabilize crypto adoption in the most populous black nation.

In a bid to promote the adoption of the yet to be launched e-Naira in Nigeria, the Central Bank of Nigeria’s deputy governor, Folashodun Shonubi recently beckons on Nigerians to adopt and use the e-Naira for sending their remittances across bothers according to a report.

The upcoming CBDC will provide a safer ground for payment more than the existing privately used cryptocurrencies.

Given this assertion one can easily deduce that the e-Naira was designed to discourage Nigerians from further adoption of Bitcoin and other crypto assets.

Reiterating the CBN ban

CBN had earlier banned Bitcoin and related crypto trading through the Nigeria’s financial institutions as reiterated in a circular of February 5, 2021.

Citing unrealistic differences which were contested by Nigerians at cross lengths who rather asked for crypto regulation than outright ban when a host of first world countries are embracing the crypto assets.

In its note, Money Laundering and Terrorism Financing, ghost users, lack of identity, non-regulatory features and more were among CBN’s reasons for a crackdown on crypto assets in Nigeria.

The CBN deputy governor in his remark noted that the e-naira stands a number of advantages ahead of the existing crypto assets;

#1. The Nigerian e-Naira will be accompanied with same benefits just as the existing cash, though in a digital formation, however, every digital currency will serve as the digital equivalent of the legal tender in Nigeria.

#2. CDBC will enhance and promote the liquidity in the banking system of a developing economy like that of Nigeria.

#3. Efficiency in national remittances is expected to gear to its peak, with a view to lower higher costs.

#4. The e-Naira is expected to work hand-in-hand with the current payment options in Nigeria.

#5. It will have same function as the fiat currency in Nigeria.

How potent will the e-Naira be?

In recent weeks some analysts took turn to criticize the position of CBN in view of the pilot phase of the CBDC.

In their remark, it was said that the e-Naira will neither control the bane of inflation nor promote the quality of life since it serves same purpose as the naira, same quality and economic value with the existing fiat, rather an economic tool aimed to destabilize the adoption of private cryptocurrency assets.

The CBN deputy governor further claimed, the apex bank is working towards reducing the use of crypto assets despite the fact that many citizens still prefer them.

This undoubtedly defines the real and genuine intent of the e-Naira, whether Nigerians will stop and deviate from crypto assets on the arrival of the CBDC is hugely a course to be contested.

On CBN winning the struggle with the e-Naira? That too is left to be seen.

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