eNaira: CBN responds to claim of Nigeria’s digital currency causing financial threat

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The Central Bank of Nigeria, CBN, has rubbished claims that its eNaira is a threat to financial stability in the country. The apex bank was reacting to reports suggesting that the digital currency, the Central Bank Digital Currency, CBDC, has threatened Nigeria’s financial stability. The bank said after reviewing the reports, which appear to have been syndicated, there seems to be a lack of understanding of portions of the Foreword, and some other articles, in the bank’s recently released ‘Economics of Digital Currencies: A Book of Readings’. It explained that a recurring theme in the book is the interest of regulators, such as the CBN, in the role of cryptocurrencies as speculative investments and the potential threat they harbour for financial stability. The apex bank explains that pursuant to that, the articles in the book provide an in-depth understanding of CBDCs generally and the workings of the eNaira in particular, highlighting issues and challenges in implementation and adoption. It noted that one of the stories raised concerns about digital currency, indicating potential risks to financial stability, despite its success in narrowing the country’s financial inclusion gap. In a statement signed by Isa AbdulMumin, Director, Corporate Communication of the CBN, said the nexus implied in the report is unconvincing. “In the ordinary course of things, the CBN does not join issues on news commentary; however, we are constrained to clarify the reports to ensure that misunderstandings are not fostered,” the apex bank added. “The eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces. “We encourage Nigerians to embrace the technology for, amongst other things, greater financial inclusion.”

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