The Central Bank of Nigeria (CBN) on Monday said that the eNaira is not a threat to financial stability in the country.
CBN’s Director of Corporate Communications, Isa AbdulMumin, in a statement, said that the eNaira is designed to improve financial inclusion and reduce the risk of speculative investments in cryptocurrencies.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to news items on some media platforms – traditional and social – suggesting that the country’s Central Bank Digital Currency (CBDC), the eNaira, is a threat to the nation’s financial stability,” AbdulMumin said.
The reports, according to AbdulMumin, seem to stem from a lack of understanding of portions of the foreword and some articles in the bank’s released book titled “Economics of Digital Currencies: A Book of Readings.”
AbdulMumin noted that the recurring theme in the book revolves around the interest of regulators, including the CBN, in the role of cryptocurrencies as speculative investments and the potential threats they may pose to financial stability.
He stated that the articles in the book provide an in-depth understanding of CBDCs generally and the workings of the eNaira in particular, highlighting issues and challenges in implementation and adoption.
“One of the media reports speaks of “concerns about Nigeria’s central bank digital currency, eNaira, indicating potential risks to financial stability despite its success in narrowing the country’s financial inclusion gap.” AbdulMumin added.
He noted that the nexus implied is unconvincing and that, in the ordinary course of things, the CBN does not join issues on news commentary.
“However, we (CBN) are constrained to clarify the reports to ensure that misunderstandings are not fostered.”
AbdulMumin said that the eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces.
He also urged Nigerians to embrace the technology for, among other things, greater financial inclusion.
