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The Nigerian Central Bank [CBN] is not a fan of Bitcoin. And it hasn’t tried to disguise this fact either. Although Nigeria is one of the top African countries for Bitcoin transactions, the central bank believes the country’s digital currency, e-Naira, has the potential to stabilise the banking sector.
According to reports, Folashodun Shonubi, the Deputy Governor in charge of Operations, recently noted that the central bank in its implementation ensured the e-Naira fed Nigeria’s economy and provided greater value. He added,
“The Central Bank Digital Currency (CBDC) will also make it easier for the banking system to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system.”
Furthermore, a central bank-issued digital money, according to the bank official, will be far safer than “privately created cryptocurrencies.” The e-naira system will supplement conventional payment methods while focusing on guaranteeing system stability. According to the Deputy Governor,
“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.”
He went on to say,
“I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”
Back in October, the CBN announced the commencement of its digital currency [e-naira] pilot programme. The project was launched in response to the country’s restriction on the trading of digital assets.
Despite widespread criticism, the central bank is still attempting to substitute favourable crypto sentiment with favorability for the e-Naira.