The Central Bank of Nigeria refutes the assertion that the naira, the country’s Central Bank Digital Currency, poses a risk to the country’s financial stability.
The Times reported that the director of corporate communications at the CBN, Isa AbdulMumin, said as much in a statement on Monday. He claimed that the assertion was a misinterpretation of the bank’s just-released book, “Economics of Digital Currencies: A Book of Readings.”
He said there was no doubt that the eNaira will promote financial inclusion rather than pose a threat to the country’s financial stability.
The CBN spokesperson refuted the claim by stating the following that the Central Bank of Nigeria has been aware of news reports appearing on several traditional and social media platforms that claim the naira, the country’s Central Bank Digital Currency, poses a risk to the country’s financial stability.
“After reading the reports, which appear to have been syndicated, it appears that some of the Foreword and some of the articles in the bank’s recently published Economics of Digital Currencies: A Book of Readings are not fully understood.
“The attention of authorities, like the CBN, in cryptocurrencies as speculative investments and the possible threat they pose to financial stability is a constant issue in the book. In addition, the book’s essays offer a thorough analysis of CBDCS generally and the naira’s operation specifically, emphasizing problems and obstacles to adoption and implementation.”
The spokesperson added that despite being successful in closing the financial inclusion gap in the nation, one of the media stories mentions “concerns about Nigeria’s central bank’s digital currency, the naira, indicating potential risks to financial stability.”
“The CBN typically refrains from participating in news commentary, but we are compelled to do so in order to prevent misunderstandings.”
AbdulMumin proceeded by saying that all of the structure’s changes have been made to enhance the user experience on all interfaces. Therefore, he advised Nigerians to adopt technology for a variety of reasons, including increased financial inclusion.
Nigeria’s Central Bank introduced the eNaira digital currency in October 2021 as part of its efforts to promote financial inclusion. The CBN’s cashless program is anticipated to benefit from the digital version of the naira.
Although there has been an obvious lack of interest on the part of Nigerians in adopting the eNaira, the recently-retired CBN Governor, Godwin Emefiele, recently disclosed that eNaira transactions had increased by 63% to NGN22 billion.
The number of wallets created using digital currency is believed to have increased by a factor of 12 from the previous figure recorded in October 2022 to 13 million wallets in March this year.
