The Economic Impact Of Nigerian Digital Currency

Economic Impact Of Nigerian Digital Currency

The Central Bank of Nigeria has explained the economic implications and importance of a centralized and regulated digital currency in Nigeria.

The apex bank had earlier revealed that it would be launching e-naira, a digital equivalent of the naira in back October, in line with global trends.

According to Director, Information and Technology, CBN, Rakitya Muhammed, the introduction of the e-naira can catalyze Nigeria’s digital economy, boost cross-border trade and enable better macroeconomic policy formulation.

Muhammed spoke virtually at the Third Quarter Industry Forum of the Committee of E-business Industry Heads held in Abuja on Wednesday.

She spoke on the theme, “Digital Currency and the Prospects of Central Bank Digital Currency in Nigeria”.

She said;

“If people adopt more of the usage of the e-naira, then we will be able to have more data to formulate better macroeconomic policies.
“And when countries come on board and create their digital currencies then we will be able to have a faster exchange of currencies and therefore we might be able to boost cross-border trade at a much lower cost.

She added;

“Of course payment efficiency, even though we know that Nigeria has one of the best payment systems in the world, we will still be able to improve on that.
“We believe that the e-naira will be a catalyst for the digital economy because the people who are outside the formal banking sector will be integrated.”
Speaking on the e-naira design, Muhammed disclosed that the design would soon be revealed as the apex bank had concluded its development.
The e-naira, she noted, will be a legal tender like the fiat naira, it will not replace but complement the naira, and anonymity of transactions is guaranteed.
“In terms of the e-naira design, it will be a legal tender just like cash which is one of the fundamental differences between it and the cryptocurrency.

Written by: Dan Madami

READ ALSO: Why E-Naira Is The Best Currency Alternative

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