The Central Bank of Nigeria (CBN) urges Nigerians to embrace the eNaira, Africa’s first central bank digital currency (CBDC), despite maintaining an anti-Bitcoin stance
Central Bank Of Nigeria (CBN) Anti-Bitcoin Stance
Nigeria has been more aware of its CBDC advertising, or lack thereof since Bitcoin jumps have become common throughout the bull season. Because the Central Bank of Nigeria maintains its anti-Bitcoin stance, the government is unable to profit from Bitcoin bull markets.
Osita Nwanisobi, Director of the Central Bank’s Corporate Communications Department, recently spoke at the Lagos International Trade Fair, urging Nigerians to embrace the eNaira, Africa’s first central bank digital currency (CBDC).
The Director stressed the qualities of the Nigerian CBDC, stating that it will enable financial diversity by permitting an innovative yet regulated and safe financial ecosystem, allowing people from all walks of life to join the digital currency bandwagon and embrace Web3.
“The e-Naira is expected to deepen financial inclusion by bringing more people into the financial space, support a resilient payment ecosystem, reduce the cost of processing cash, enable direct and transparent welfare intervention to citizens, increase transparency in revenue and tax collections, facilitate diaspora remittances, reduce the cost of financial transactions and improve the efficiency of payments…Today, customers who download the eNaira Speed Wallet App will be able to onboard and create their wallet; fund their eNaira wallet from their bank account; transfer eNaira from their wallet to another wallet, and make payment for purchases at registered merchant locations.”
Is the Nigerian CBDC a boon or a bane?
Last month, Nigeria became the first African country to launch a CBDC, dubbed eNaira, last month, leaving Communist China in the dust. Despite the previous postponement, the Nigerian Central Bank stated that their goal was to launch a full product rather than meet deadlines.
Despite the country’s history of financial inequality and lack of banking facilities for the poor, the Nigerian government expected the eNaira to lead the way toward the “evolution of money” with its introduction. Nigeria’s Central Bank even outlawed Bitcoin in order to boost the country’s CBDC even more.
However, considering the country’s financial polarization, a Bitcoin prohibition may have been a mistake given the current bull run.
