The Central Bank of Nigeria (CBN) has responded to concerns raised by media outlets about the potential impact of the eNaira on the country’s financial stability. In an official statement, the CBN clarified that its eNaira project, despite being one of the pioneering central bank digital currencies globally, does not pose any threat to Nigeria’s financial stability.
The controversy stemmed from references to the CBN’s publication, “Economics of Digital Currencies: A Book of Readings,” which delves into the implications of central bank digital currencies on the economy. The report highlighted the gradual increase in eNaira adoption, currently accounting for a 0.2% share compared to the liquidity of Nigerian banks. Notably, funds held in eNaira wallets are not accessible to commercial banks, raising theoretical concerns about potential liquidity challenges if the naira were fully embraced.
However, the CBN emphasized that these concerns are part of the broader theoretical discussion around any Central Bank Digital Currency (CBDC). The official statement chose not to elaborate extensively but straightforwardly denied the media’s allegations. Instead, the CBN pointed to the comprehensive insights about Central Bank Digital Currencies (CBDCs) outlined in its report.
“The entire structure continues to evolve and undergo modifications aimed at enhancing the user experience across all interfaces. We encourage Nigerians to embrace the technology for, among other things, greater financial inclusion,” the CBN stated.
It’s worth noting that a survey conducted across 15 countries indicated that Nigeria’s population is exceptionally crypto-aware. According to a joint study by ConsenSys and YouGov, 99% of Nigerian respondents demonstrated a higher familiarity with Web3 compared to major economies like the UK, the US, Japan, and Germany. Despite concerns, the eNaira project is part of Nigeria’s evolving financial landscape, reflecting the country’s growing interest in innovative digital technologies.