The Central Bank of Nigeria (CBN) has shown no signs of abandoning its central bank digital currency (CBDC) program despite the former governor’s removal about two months ago.
The central bank has recently improved the CBDC smartphone app by integrating Near Field Communication (NFC) technology, claims local news source The Sun.
This improvement makes it possible for mobile devices and payment terminals to communicate while they are close to one another, making contactless and practical eNaira payments possible.
The CBN reportedly highlights that the most recent addition of NFC technology will play a vital role in increasing the adoption rates for the CBDC although earlier versions had QR codes.
According to reports, the CBN’s deputy director for risk management, Joseph Angaye, stated that the banking regulator is committed to using cutting-edge technologies to improve user experience.
Angaye reportedly stated that the CBDC would include programmability features, embracing the idea of leveraging cutting-edge technology. He noted that by limiting CBDC payments to specific government programs only, these programmability features could lower the danger of fraud.
According to reports, Angaye went on to underline that the programmability of the CBDC enables targeted financial allocation to farmers, enabling certain goals like the purchase of tools.
This strategy ensures that the intended usage is strictly followed by making the money put into their eNaira wallet non-divertible for unrelated uses.
According to sources, Angaye emphasized the benefits of CBDCs for retail users in the nation, including reducing settlement risks and facilitating quick transaction processing.
He noted that the eNaira’s goal is to solve the problem of financial inclusion and that Nigeria’s role as a pioneer in the adoption of CBDCs offers useful lessons for other economic players and entities to draw from.
Nigeria introduced the eNaira in 2021 to join a select group of nations having a CBDC program. However, adoption rates need to catch up to forecasts, leading the central bank to consider a number of usage-boosting approaches.
While integrating USSD capabilities into the service, the central bank released use cases in the transportation sectors. Former CBN Governor Godwin Emefiele attributed poor adoption rates to commercial banks’ suppression of eNaira’s expansion in favor of their profitability.
