Nigeria’s central bank advocates e-Naira as a ‘safer alternative’ to Bitcoin

Nigeria’s central bank advocates e-Naira as a ‘safer alternative’ to Bitcoin

The Central Bank of Nigeria [CBN] is not a fan of Bitcoin. And, this isn’t a fact it has tried to hide either. Although Nigeria is among the top African nations using Bitcoin to transact, the central bank believes the country’s digital currency, e-Naira, could ascribe stability to the banking system.

According to reports, Folashodun Shonubi, the Deputy Governor in charge of Operations, recently noted that the central bank in its implementation ensured the e-Naira fed Nigeria’s economy and provided greater value. He added,

“The Central Bank Digital Currency (CBDC) will also make it easier for the banking system to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system.”

What’s more, according to the bank official, a digital currency issued by the central bank will prove to be much safer than “privately issued cryptocurrencies.” Focusing on ensuring a stable system, the e-naira system, will complement existing payment pathways. The Deputy Governor explained,

“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.”

He went on to say,

“I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”

The CBN had previously announced the launch of its digital currency [e-naira] pilot program back in October. The project followed a ban on the trade of digital assets in the country.

Although the step was widely criticized, the central bank is still making an effort to replace positive crypto-sentiment with favorability towards e-Naira.

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