CBN Aims to Revamp eNaira to Enhance Appeal Among Nigerians
The Central Bank of Nigeria (CBN) has recently announced its intention to remodel the eNaira, the country's digital currency. This move comes as part of a continuous effort by Nigeria to attract more users to its Central Bank Digital Currency (CBDC), which has faced challenges regarding acceptance and usage.
In a statement posted on the Central Bank of Nigeria's X (formerly Twitter) account, the CBN revealed that it plans to change the current eNaira model. The acting governor of the CBN, Folashodun Shonubi, emphasized that this step aims to encourage greater usage, participation, and transaction volumes.
The Central Bank of Nigeria (CBN) is amending the eNaira model to boost wallet holders and activity. Launched in 2021, the eNaira struggles to gain relevance among Nigerians, resulting in a lukewarm public reception. In February, it was reported that the CBN was engaging in discussions with new "technology partners" to develop an improved system for managing the government-backed digital currency. The goal was to create proprietary software for the eNaira, providing the CBN with full control over its operation.
During the period of economic instability in February-March, the eNaira experienced a slight surge in usage, with a 63% increase in transactions, amounting to 22 billion Naira ($47.7 million) since its inception. The number of eNaira wallets also saw significant growth, increasing over 12 times to 13 million compared to data from October 2022.
The eNaira's adoption in Nigeria remains low, with 98% of digital wallets remaining unused. The new administration, led by Bola Tinubu, has reported an app upgrade in July. The new administration must create a fresh strategy to make the CBDC more appealing to everyday Nigerians, especially retail business owners. Encouraging widespread adoption and usage is crucial for the eNaira's success.
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