The decision of the Bank of Nigeria to replace old banknotes with new higher denominations amid high inflation has led to a shortage of cash and an increase in CBDC transactions. Writes about it Bloomberg.
Since October 2022, the volume of transactions with digital naira (eNaira) jumped by 63%, to 22 billion (~ $ 47.7 million), and the number of open wallets more than 12 times, to 13 million. Such data was provided by the Governor of the Central Bank of Nigeria Godwin Emephiele.
The monetary reform contributed to the reduction of cash in circulation from 3.2 trillion NGN up to 1 trillion NGN with the release of over 10 billion eNaira (3.4 billion coins are in circulation).
Government initiatives and social programs also contributed to the growth of the CBDC audience.
“eNaira has become the preferred e-payment channel for expanding access to financial services” Emefiele explained.
Recall that in December 2022, the Nigerian authorities introduced withdrawal limits as part of the promotion of cashless alternatives and the expansion of the use of CBDC.
Previously IMF warned that digital naira could pose money laundering and terrorist financing risks. The organization’s experts saw similar threats in the cross-border application of CBDC.
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The decision of the Bank of Nigeria to replace old banknotes with new higher denominations amid high inflation has led to a shortage of cash and an increase in CBDC transactions. Writes about it Bloomberg.
Since October 2022, the volume of transactions with digital naira (eNaira) jumped by 63%, to 22 billion (~ $ 47.7 million), and the number of open wallets more than 12 times, to 13 million. Such data was provided by the Governor of the Central Bank of Nigeria Godwin Emephiele.
The monetary reform contributed to the reduction of cash in circulation from 3.2 trillion NGN up to 1 trillion NGN with the release of over 10 billion eNaira (3.4 billion coins are in circulation).
Government initiatives and social programs also contributed to the growth of the CBDC audience.
“eNaira has become the preferred e-payment channel for expanding access to financial services” Emefiele explained.
Recall that in December 2022, the Nigerian authorities introduced withdrawal limits as part of the promotion of cashless alternatives and the expansion of the use of CBDC.
Previously IMF warned that digital naira could pose money laundering and terrorist financing risks. The organization’s experts saw similar threats in the cross-border application of CBDC.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
