Central Bank of Nigeria Affirms eNaira CBDC Doesn’t Pose Threat to Financial Stability

The Central Bank of Nigeria (CBN) has responded to circulating media concerns regarding the eNaira, the nation’s Central Bank Digital Currency (CBDC), being perceived as a risk to financial stability, according to a recent press release.

The CBN emphasized that these concerns are based on a misinterpretation of the recently released “Economics of Digital Currencies: A Book of Readings.”

As per the CBN, the book primarily discusses cryptocurrencies as speculative investments and their impact on financial stability. It explains CBDCs, focusing on the eNaira and challenges in its implementation and adoption for comprehensive understanding.

PRESS RELEASE: eNaira No Threat To Financial Stability pic.twitter.com/MYwxUoHvWe

— Central Bank of Nigeria (@cenbank) October 9, 2023

The press release clarifies that some reports inaccurately linked the eNaira to risks despite reducing financial exclusion. Although usually refraining from public debates, the CBN deemed it necessary to clarify the reports to avoid misunderstandings.

The CBN acknowledges that the structure of the eNaira is continually evolving to enhance the user experience across all interfaces. It encourages Nigerians to embrace the technology, particularly to advance financial inclusion.

Issued by Isa AbdulMumin, CBN’s Director of Corporate Communications, the release clarifies the eNaira’s development, dispelling misinterpretations. It underscores the importance of understanding digital currencies’ intricacies and their role in the country’s financial landscape.