The fresh inclusion of digital currency by CBN known as E-Naira has sparked controversies around it, making Folashodun Shounbi, render a reaffirmation to strengthen the promotion of the new digital currency, supposed to supplement the existing parts of payment choices.
According to Shounbi, who believes this will certify “the stability of the payment system in the long run”. In his other remarks as reported, Shonubi suggested that Central Bank Digital Currency (CBDC) will have the same functions as fiat naira.
The deputy governor said: “The central bank digital currency offers all the benefits of cash but in digital form. Every single
digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.”
With a trial phase starting on October 1st, Shonubi said he anticipates seeing “rapid inclusion rates” in the forth-coming days. Also, when the CBDC deployment is thorough, e-naira will be divergent from privately allotted cryptocurrencies well-known for “been used for investment”
The wide-ranging view that digital currencies can meaningfully lower the cost of cross-border payments is conscious in Shonubi’s mind. Nevertheless, the virtual event, organized by the Chartered Institute of Bankers of Nigeria (CIBN), where the CBN, deputy governor spoke and warned at the risks that the central bank needs to be in search for.
He elaborated: “For banks in developing nations, it will enhance their liquidity, efficiency in national remittances, and challenge the high cost of remittances as the world rebounds in the post-pandemic. I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”
The reiteration has strengthened the Central Bank’s desire to have a digital currency that contests privately dispensed crypto like bitcoins and ethereum but this proves contradictory to CBN’s litany of decisions that seek to weaken or daunt the use of cryptocurrencies.
Regardless of these resolutions, interest in crypto continues to rapidly grow. When the rollout of e-naira begins, it would be attention-grabbing to see how it balances in between other privately issued cryptocurrencies.
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