Nigerians Optimistic CBDC Will Improve Payments and Help Promote Cryptocurrencies
According to a VOA report some Nigerian blockchain experts, such as Janet Kaatyo, believe that the e-naira launch favors cryptocurrencies. Before the February directive by the Central Bank of Nigeria, cryptocurrency trading and usage in Nigeria had risen due to restrictions on pandemic-related movements.
The CBN was forced to take action by this increasing popularity and the depreciation in the naira. After ordering banks to expel crypto players, CBN promoted the e-naira. It claimed that it would “ease monetary transactions” and increase the currency’s long-term value.
CBDC’s Role in Combating Corruption
Although the CBN has not yet announced the launch date of the e-naira’s new currency, some Nigerians, such as Daniel Yerimah (a digital strategist), still believe that this central bank digital currency will help authorities combat corruption and money laundering.
“Everything built on blockchain can be trusted and secured. It’s universal. Another benefit is that it’s safe and secure. Yerimah explains that the eNaira will be used to facilitate international and local trade, as well as fight corruption.
The report states that despite the optimism expressed by the CBN as well as blockchain experts, there are still concerns about ‘the emergence CBDCs will cut out roles played by intermediary bank and give the central banking more control over citizens’ financial rights’. Jadel Chidi (a Nigerian expert in blockchain) disagrees.
Chidi instead says that he sees the CBN creating “a portal where every e-naira user can access their ewallet through their bank’s database.”