The Central Bank of Nigeria (CBN) has provided assurances that its digital currency, eNaira, does not pose a threat to financial stability. Dr. Isa AbdulMumin, the Director of the Corporate Communications Department at CBN, made this statement in Marrakech on Monday.
AbdulMumin’s comments came in response to a recent media report that had raised concerns about the potential risks to financial stability associated with Nigeria’s Central Bank Digital Currency (CBDC), eNaira.
The report cited articles from a recently released CBN book, suggesting that despite its success in narrowing the country’s financial inclusion gap, eNaira could be a potential threat to financial stability.
The report noted that since its inception, the conversion of bank deposits into eNaira had exhibited an average monthly growth rate of 78.3 percent, totaling approximately N1.66 billion.
AbdulMumin clarified that a review of the report indicated a misunderstanding of certain portions of the articles in the CBN’s book titled “Economics of Digital Currencies.’’
He pointed out that the book’s recurring theme centered on regulators like the CBN’s interest in cryptocurrencies as speculative investments and the potential threats they may pose to financial stability.
The director emphasized that as the eNaira’s structure continued to evolve, it was being modified to enhance the user experience across all interfaces.
He encouraged Nigerians to embrace this technology, particularly for the purpose of greater financial inclusion.
The eNaira was initiated by the former CBN governor, Godwin Emefiele, and was inaugurated in October 2021 by former President Muhammadu Buhari.
Nigeria holds the distinction of being the first African country to adopt a Central Bank Digital Currency (CBDC).