Few experts shared their take on the success of Nigerian Central Bank Digital Currency (CBDCs) and pointed out two important factors that may end up in the failure of the e-Naira rollout.
In October, Nigeria central Bank launched its Central Bank Digital Currency (CBDCs), or e-Naira, after a delay of a few days because of the ‘independence day’ occasion.
At present, e-Naira is not available to the citizens of Nigeria. It is still in the beta testing phase and available to the limited banks and firms to ensure the working system and its reliability, reports said.
e-Naira vs Fintech startups
Adedayo Ademuwagun, the analyst at Songhai Advisory, shared his take on the e-Naira and said that most of the goals of the e-Naira project are inclined toward the digitalisation of the Naira Currency. However, this initiative of CNB is a good decision like other countries’ central banks. But here, the situation is different for Nigeria. Because there are several Fintech companies in Nigeria and they are already doing the same. He further continues
“The issue is that all of this can already be adequately addressed using the existing financial payments system. Nigeria is the fintech capital of Africa, so there are just so many options, so many ways to pay somebody, and pay them fast, already”
Trust issues with e-Naira
Ronak Gadhia, the analyst at EFG Hermes, shared his stance on e-Naira and said that Nigeria government authorities clearly said that they will see over the e-Naira users with better clarity. And this will bring a trust issue for the users. In the situation of getting traced by the government authorities, people will choose another option.
Even in the present time, Nigerian authorities Ordered banks to freeze the bank accounts holders if found involved in crypto-related transactions.
“The government effectively knows every transaction you carry out and in a place like Nigeria where there’s a bit of mistrust between ordinary Nigerians and the government there may be scepticism in terms of adoption”
However, Analysts said that it will be too quick to figure out the potential of e-Naira in this situation. We should wait for this.
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