Nigerians’ Upbeat CBDC Will Improve Payments And Help Promote Cryptocurrencies

Nigerians hope that the central bank planned digital currency (CBDC), also known as e-naira, will improve international payments and facilitate the widespread use and acceptance of the naira.

E-Naira launches a giveaway to Cryptos

In fact, according to a VOA report, some Nigerian blockchain experts like Janet Kaatyo believe that the launch of e-naira will work in favor of cryptocurrencies. Prior to the February directive from the Central Bank of Nigeria (CBN), the use and trading of cryptocurrencies in Nigeria increased in part due to movement restrictions related to the pandemic.

However, this growing popularity, coupled with the devaluation of the naira, eventually forced CBN to act. Shortly after ordering banks to squeeze crypto players, the CBN began promoting e-naira which it said “facilitates currency transactions and enhances the long-term value of the Nigerian currency.”

The role of the CBDC in the fight against corruption

Although the CBN has yet to announce e-naira’s new launch date, some Nigerians like Daniel Yerimah, a digital strategist, still hope that the central bank’s digital currency (when launched) will help authorities fight corruption. and money laundering. .

“Everything that is integrated into the blockchain is very safe and secure. Another thing is that it is universal, part of the benefits that they intend to achieve with eNaira is that it will be used for both local and international trade and also to combat corruption ”, says the report that quotes Yerimah.

Despite the optimism shown by CBN and blockchain experts, there are constant fears that “the emergence of CBDC will eliminate the roles played by intermediary banks and give the central bank more control over the financial rights of citizens,” notes the report. Another Nigerian blockchain expert, Jadel Chidi, says he disagrees.

Instead, Chidi says he hopes CBN will end up creating “a portal where each e-naira user can access their electronic wallet through the database they already have at their bank.”