CBDC Helps Nigeria Remain Competitive in Digital World

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According to the governor of the Nigerian central bank, the introduction of a digital currency called e-Naira in the country can help in boosting investment and trade activities. He went on to say that it was also necessary because it would allow Nigeria to remain competitive in this world, which is becoming increasingly digital with each passing day.

CBDC is essential

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), said that the e-Naira is a must for the country because the digital currency allows Nigeria to keep up with the world that is becoming increasingly digital. He added that the launch of the central bank digital currency (CBDC) would be immensely helpful for the payment industry in Nigeria because it would promote investment and trading activities.

Nigerians have been very skeptical about the launch of the digital e-Naira and the remarks from the CBN’s governor are the latest to come from an official of the central bank or the government for reassuring people. The CBDC was launched in Nigeria last year in October and the introduction of the e-Naira had been made in a similar way by Muhammadu Buhari, the president of the country. He had stated that the digital currency would help the country’s GDP grow to $29 billion in a decade’s time.

Other than reassuring people about the CBDC, the central bank has also attempted to product the use of the e-Naira at the various events it has hosted. The latest event that will be conducted for this purpose was the hackathon named ‘eNaira- Africa’s Gateway to a Digital Economy’ is expected to begin on June 27th and will continue till July 21st.

Eliminating glitches

Nigerians have been encouraged by the Central Bank of Nigeria (CBN) to register for the hackathon. A report disclosed that the central bank believes the event would be helpful for innovators in coming up with different solutions for the digital currency. Emefiele also said that the e-Naira would prove to be necessary in the future because it would help the country in staying competitive in a digital world.

He said that it had become apparent in the last few years that digital currencies are opening up international economies and they are proving to be instrumental when it comes to buying, trading, and investing seamlessly. They have helped in engaging in a myriad of economic activities.

The CBN and the organizers of the event said that all innovators in attendance would also use this as an opportunity to monitor e-Naira and identify glitches that could hamper the use of the CBDC. This would help them in ensuring that there are no glitches in transactions when the digital currency is used. The report stated that the innovators would also be asked to develop a design for the e-Naira that would help in allowing cross-border and blockchain remittances.

While Nigeria has already introduced its digital currency, there are other countries that are working on developing their respective central bank digital currencies (CBDCs).