By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has described reports in the media that the eNaira was becoming a threat to financial stability in the country.
In October 2021, the apex bank, under the leadership of its controversial former Governor, Mr Godwin Emefiele, introduced the electronic currency, which some observers that said failed to make a significant positive impact.
The digital currency was created by the CBN under the Central Bank Digital Currency (CBDC), but Nigerians have refused to adopt the initiative because of the confusion around it.
In a statement issued by its spokesman, Mr Isa AbdulMumin, on Monday, the CBN said the eNaira structure is evolving, urging Nigerians to embrace it.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to news items on some media platforms – traditional and social – suggesting that the country’s Central Bank Digital Currency (CBDC), the eNaira, is a threat to the nation’s financial stability.
“After reviewing the reports, which appear to have been syndicated, there seems to be a lack of understanding of portions of the Foreword, and some articles, in the bank’s recently released Economics of Digital Currencies: A Book of Readings.
“A recurring theme in the book is the interest of regulators, such as the CBN, in the role of cryptocurrencies as speculative investments, and the potential threat they harbour for financial stability.
“Pursuant to that, the articles in the book provide an in-depth understanding of CBDCs generally and the workings of the eNaira in particular, highlighting issues and challenges in implementation and adoption.
“One of the media reports speaks of concerns about Nigeria’s central bank digital currency, eNaira, indicating potential risks to financial stability despite its success in narrowing the country’s financial inclusion gap.
The nexus implied is unconvincing. In the ordinary course of things, the CBN does not join issues on news commentary; however, we are constrained to clarify the reports to ensure that misunderstandings are not fostered.
“The eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces. We encourage Nigerians to embrace the technology for, amongst other things, greater financial inclusion,” the statement said.
