Key Takeaways
- A VOA article says some Nigerian blockchain specialists like Janet Kaatyo think the e-naira debut would benefit cryptocurrencies.
- Some worry that the CBDC will give the central bank more power over citizens' finances.
- Another advantage is that the eNaira will be universal.
A VOA article claims that certain Nigerian blockchain specialists, such as Janet Kaatyo, think the introduction of the e-naira would benefit cryptocurrencies.
Before the CBN's February order, bitcoin use and trade in Nigeria had increased as a result of mobility restrictions linked to the Ebola epidemic.
This increasing popularity, along with the naira's devaluation, ultimately compelled the CBN to intervene.
The Central Bank of Nigeria (CBN) started pushing the e-naira shortly after instructing banks to squeeze out crypto players, claiming that it would "simplify monetary transactions and enhance the long-term value of Nigeria's currency."
When it comes to the e-naira, some Nigerians, like digital strategist Daniel Yerimah, are optimistic that the central bank’s digital currency would assist reduce corruption and money laundering.
Anything constructed on top of the blockchain is virtually untraceable.
"It will be utilized for international and local commerce as well as fighting corruption," Yerimah is quoted as saying of the new eNaira currency. "Another thing is that it's global."
With regards to CBDCs, there are worries that "the development of CBDCs would cut off functions performed by intermediate banks and allow the central bank greater influence over people' financial rights," according to a report. However, Jadel Chidi, a Nigerian blockchain specialist, is of the opinion that this is not the case.
Instead, Chidi believes the CBN would create "a site where each e-naira user will be able to access their e-wallet via the database they currently have with their bank" in the future.
In your opinion, what are the positive and negative aspects of Nigeria's CBDC?
