Despite claims of “excellent” adoption rate, CBDC is still unattractive to users – Emerging Markets Bitcoin News

Despite claims of “excellent” adoption rate, CBDC is still unattractive to users – Emerging Markets Bitcoin News


Nigerian blockchain and cryptocurrency experts suggest that many potential users will consider e-naira only after the central bank has taken sufficient steps to make CBDC (Central Bank Digital Currency) an attractive option.

E-Naira is still not attractive to users

Some Nigerian experts are skeptical of the Central Bank of Nigeria (CBN) statement that many residents of the country with more than 200 million residents are interested in the recently launched Central Bank Digital Currency (CBDC) or switched to e-naira.

Experts believe that e-naira, which was originally only available to Nigerians with bank accounts, lacks the functions of privately issued cryptocurrencies. In addition, there is insufficient information on the number of electronic nairas in circulation. From the perspective of these experts, it is the lack of these attributes that makes the widespread adoption of CBDC an almost impossible goal.

Since the launch of e-naira in late October, CBN has regularly issued updates, indicating that Nigerians are welcoming the government’s claims to Add to A multi-billion dollar economy.

In addition, CBN officials like Ch’Edozie Okonjo use public events to win support for Africa’s first digital currency. For example, in a speech at a recent event organized by the Chartered Bankers Association of Nigeria, Okonjo It is said that It was revealed that CBN recorded more than 34,000 transactions on the e-naira platform, valued at 450,000 U.S. dollars (188 million naira).

However, despite the enthusiastic support of central bank officials for the electronic naira, some blockchain and cryptocurrency experts interviewed by News expressed doubts about the claim that CBDC is being widely adopted. Experts also pointed out that only those who have a bank account can use digital currency.

CBN must explain why Nigerians need CBDC

Others, such as encryption expert and publisher Aniekan Fyneface, said that the authorities need to explain to Nigerians why they need an e-naira account, and ordinary bank accounts can already fulfill CBN’s promise. Fyneface raised some issues that the authorities must consider before encouraging Nigerians to adopt CBDC. he asks:

Is electronic naira a digital payment currency? If used for payment, what are the incentives or advantages? The government needs to make it attractive, such as offering discounts to people who pay with eNaira, because I already have multiple Nigerian bank accounts and added an e-naira to them, what will I get?

Fyneface added that unless some of these issues are seriously considered, many Nigerians will not switch from privately issued cryptocurrencies to electronic naira as CBN hopes.

Nigerian crypto product expert Nathaniel Luz (Nathaniel Luz) holds a similar view on the prospects of e-naira. In a written response to a question sent by News, Luz stated that he agreed with CBN’s current crackdown on entities that facilitate P2P (peer-to-peer) transactions to force Nigerians to switch to e-naira.

Despite the CBN outlaw, this forced crypto companies like Kurepay to consider move Outside of Nigeria, Luz insists that “in the final analysis, the user makes the decision.” He added that when there is a choice, many Nigerians will “choose a medium of exchange that is not censored”.

The comments of Nigerian experts cited by News and those on the condition of anonymity indicate that CBN has a lot of work to do before it truly expects e-naira to achieve its goals such as reducing Bitcoin, being economically excluded or reducing transaction costs. The number of adults.

What are your thoughts on this story? Tell us what you think in the comments section below.

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