Nigeria’s Central Bank confident about local CBDC eNaira

The Central Bank of Nigeria expressed that the local CBDC, the eNaira, is not a threat to the nation’s financial stability.

On October 9, the Central Bank of Nigeria (CBN) issued a statement explaining that the eNaira does not threaten the nation’s financial stability. The statement came in response to local media indicating that the CBDC could threaten the nation’s financial stability.

In September, the central bank published a  300-page book, “Economics of Digital Currencies: A Book of Readings, ” explaining the financial implications of adopting a CBDC. The paper included topics such as the potential effect of a CBDC on deposit liabilities, regulatory concerns, social welfare, and public sentiment.

The bank explained that the CBDC and the cryptocurrencies are different things; hence, the speculation of the cryptocurrency market behind the fake news doesn’t apply to the use of the CBDC.

CBN Director of Corporate Communications, Dr. Isa Abdulmumin, added that there is a lack of understanding of CBDC behind the news on the eNaira as a potential threat to the nation’s financial stability.

CBDC has been playing an essential role within central banks’ economies digitization worldwide, as some examples can be seen as the digital yuan and the digital euro, among other cases.