Emmanuel OchayiThe Central Bank of Nigeria (CBN) has pushed back against claims in some quarters that its digital currency, the eNaira, poses a threat to the nation’s financial stability.
CBN’s Director of Corporate Communications, Isa AbdulMumin, defended the eNaira in a statement, stating, “The eNaira is designed to improve financial inclusion and reduce the risk of speculative investments in cryptocurrencies.”
AbdulMumin spoke in response to reports circulating on both traditional and social media platforms suggesting that the eNaira could jeopardize the country’s financial stability. He attributed these concerns to a misunderstanding of certain sections of the CBN’s newly released book, “Economics of Digital Currencies: A Book of Readings.”
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The book’s core message, according to AbdulMumin, revolves around regulators’ interest, including the CBN, in understanding cryptocurrencies’ role as speculative investments and their potential impact on financial stability.
AbdulMumin emphasized that the book provides valuable insights into Central Bank Digital Currencies (CBDCs) as a whole and offers a detailed look at the inner workings of the eNaira. It delves into the challenges and issues surrounding the implementation and adoption of CBDCs.
Addressing one specific media report that raised “concerns about Nigeria’s central bank digital currency, eNaira, indicating potential risks to financial stability despite its success in narrowing the country’s financial inclusion gap,” AbdulMumin countered that the implied connection is unconvincing.
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While the CBN typically refrains from responding to news commentary, AbdulMumin clarified, “We (CBN) are constrained to clarify the reports to ensure that misunderstandings are not fostered.”
Furthermore, AbdulMumin highlighted that eNaira’s structure continues to evolve and undergo improvements aimed at enhancing the user experience across all interfaces. He encouraged Nigerians to embrace this technology, particularly for the purpose of achieving greater financial inclusion.
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