## Experts see the latest Nigerian CBDC launch before the end of the year as “unrealistic.”
In the past several months, the Nigerian government had not shown any support for digital money. From an anti-crypto policy to issued warnings by several monetary and regulatory bodies against using cryptocurrencies, digital money in Nigeria has often been stifled by authority. Regardless, Nigeria remains one of the largest crypto markets globally and the largest in Africa. Recently, the government is showing contradictory views as they work towards a CBDC.
Major Updates
- Experts say the CBDC launch plans are “unrealistic.”
- The main reason for delay is Nigeria's economic state.
- For a successfel project, the CBN would have to take their time adopting a CBDC.
CBDC impossible in 2021
Nigeria has had a majority of negative regulations and the likes towards cryptocurrencies. It first first started out with a crypto ban, and then BVN access was blocked on Fintechs firms and then a ban on Nigeria’s top social crypto community, Twitter.
Recently, the CBN had announced plans to adopt the country’s first ever CBDC. A contradiction to previous crypto regulations.
Alongside the announcement of the CBDC launch, it was also stated that it would be carried out before the end of the year. However, many experts believe that this will be an impossible attempt by the government at least for the time being within 2021.
Economist as well as chairman of the Chartered Institute of Bankers of Nigeria, Abuja division, Professor Uche Uwaleke is one of the many that disagree with the launch period.
Prof Uwaleke expresses that with regards to the current economic situation of the country, issuing a CBDC by the end of the year would be highly impossible. However, he noted the benefits that would arise from a potential CBDC issuance but equally explains the pitfalls with regards to many pressing factors. These include financial stability, cash transmission, inflation, and lobbying of corresponding financial institutions.
He added that as other global giants like the United States are currently still researching the concepts of CBDCs, it would be best that Nigeria does not rush into adopting an innovation too early in the trend.
Conclusion
Another economist and financial expert, Alexander Umerie agrees with Uwaleke.
He agrees that CBN should hop along on money trends as a way to enhance various loopholes however, rushing into it would not be advisable.
Question of the day
Do you agree with these two economists on a potential Nigerian CBDC?
