Key Takeaways
- The Nigerian President, Muhammad Buhari, expect the Newly launched Digital currency to boost the country's GDP by $29 million in the coming ten years.
- The president claimed that the central bank has one of the best Payment systems worldwide and the best in the Continent.
- The President expects the CBDC to help in boosting financial regulation effectiveness.
On the formal introduction of the Nigerian CBDC on Monday, the Nigerian President said that some data showed that adopting the digital currency and its underlying technology, Blockchain, might improve the Nation's GDP by $29 billion over the next 10 years. He noted that, in addition to increasing the country's GDP, the invention would aid in the migration of many individuals and industries from the informal to the formal sectors.
He said that, although many nations are still studying and evaluating digital currency, the Nigerian central bank, which he claims has been investigating digital currency for approximately four years, is in a good position to introduce the CBDC.
In his address, the president explained why the Central Bank's request to investigate the potential of launching what would later become Africa's first digital currency was approved.
He stated that the action was supported by the fact that the Nigerian Central Bank is known for being the foremost in the type of money they produce and the type of payment services they use for productive transactions.
They have worked very well to create a payment system that is rated as top ten worldwide and unquestionably the best on the continent.
Related post: President Muhammadu Buhari Launches the eNaira
The president said that this payment system component, as well as the Central Bank's backing for different Private Sector efforts to improve the present payment environment, made the Central Bank the proper entity to issue the country's CBDC.
Despite praising the country's financial system, the president stressed that the pilot stage of the digital currency's launch must be strictly monitored and managed.
When successfully evaluated, it is expected that digital money would assist promote remittances, encourage international commerce, enhance monetary inclusion, and make financial regulators more active.
Does the president's assertion that the CBDC would assist increase the country's GDP ring true?
