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“eNaira Poses No Threat to Financial Stability,” Says Central Bank

eNaira Poses No Threat to Financial Stability," says CBN
"eNaira Poses No Threat to Financial Stability," says Central Bank

The Central Bank of Nigeria (CBN) has firmly rebutted claims that its Central Bank Digital Currency (CBDC), the eNaira, poses any danger to the country’s financial stability. This statement came from CBN’s Director of Corporate Communications, Isa AbdulMumin.

In this statement, the CBN clarified the situation and emphasized that these claims stemmed from a misunderstanding of the bank’s recently published work, ‘Economics of Digital Currencies: A Book of Readings.

According to the CBN spokesperson, “The attention of the Central Bank of Nigeria (CBN) has been drawn to news items on some media platforms – traditional and social – suggesting that the country’s Central Bank Digital Currency (CBDC), the naira, is a threat to the nation’s financial stability.”

Furthermore, the statement continued, “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 harbor for financial stability. Under that, the articles in the book provide an in-depth understanding of CBDCs generally and the workings of the naira in particular, highlighting issues and challenges in implementation and adoption.”

AbdulMumin defended the eNaira’s integrity, stating, “One of the media reports speaks of ‘concerns about Nigeria’s central bank digital currency, naira, indicating potential risks to financial stability despite its success in narrowing the country’s financial inclusion gap.’ The nexus implied is unconvincing.”

The CBN reaffirmed that their primary goal is to drive financial inclusion through the eNaira. AbdulMumin also noted the ongoing improvements in the eNaira’s structure to enhance the user experience across all interfaces.

eNaira

Launched in October 2021, the eNaira was introduced as part of Nigeria’s efforts to promote financial inclusion and support the CBN’s cashless policy. Despite initial hesitation among Nigerians, recent statistics revealed substantial growth, with a 63% surge in eNaira transactions to NGN22 billion.

Wallet creation has also skyrocketed, increasing twelvefold from October 2022 to March this year, reaching a total of 13 million wallets.

Techrectory with Agency Report.

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Written by Ayodeji Ayenuwa

Well, My name is there already, I'm a student of Adekunle Ajasin University, Akungba Akoko, studying Mass Communication: Public Relations and Advertising.

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