The IMF praised the Nigerian CBDC

The International Monetary Fund (IMF) issued reportdedicated to Nigeria’s Central Bank Digital Currency (CBDC). Its authors praised the authorities for the work done.

A country launched eNaira in October 2021. According to the IMF, only 1.5% of wallets have been active every week over the past 12 months. During the reporting period, 802,000 transactions were made.

Less than 1% of open bank accounts in the country have a linked CBDC digital wallet.

“As with any network product with similar characteristics, such as credit cards, breaking the initial bar of low adoption requires a combination of smart strategies and luck,” the IMF said.

According to the document, Nigeria has successfully carried out the first stages of technology integration. However, the country has not yet been able to organize access to the service for non-financial institutions, and the process of remittances is still too complex.

The IMF recommended that the country establish links with operators of electronic money services. According to the organization, such a move will help the wider adoption of eNaira.

Also, the local CBDC is experiencing problems in the global market, as foreign counterparties cannot access the assets. The authors of the report suggested creating appropriate wallets for international money transfer operators or resorting to the services of intermediaries.

The IMF has previously warned that digital naira could pose money laundering and terrorist financing risks. The organization’s experts saw similar threats in the cross-border use of the asset.

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.

In March 2023, it became known that the decision of the Bank of Nigeria to replace old banknotes amid high inflation led to a shortage of cash and an increase in transactions using eNaira.

Found a mistake in the text? Select it and press CTRL+ENTER

The International Monetary Fund (IMF) issued reportdedicated to Nigeria’s Central Bank Digital Currency (CBDC). Its authors praised the authorities for the work done.

A country launched eNaira in October 2021. According to the IMF, only 1.5% of wallets have been active every week over the past 12 months. During the reporting period, 802,000 transactions were made.

Less than 1% of open bank accounts in the country have a linked CBDC digital wallet.

“As with any network product with similar characteristics, such as credit cards, breaking the initial bar of low adoption requires a combination of smart strategies and luck,” the IMF said.

According to the document, Nigeria has successfully carried out the first stages of technology integration. However, the country has not yet been able to organize access to the service for non-financial institutions, and the process of remittances is still too complex.

The IMF recommended that the country establish links with operators of electronic money services. According to the organization, such a move will help the wider adoption of eNaira.

Also, the local CBDC is experiencing problems in the global market, as foreign counterparties cannot access the assets. The authors of the report suggested creating appropriate wallets for international money transfer operators or resorting to the services of intermediaries.

The IMF has previously warned that digital naira could pose money laundering and terrorist financing risks. The organization’s experts saw similar threats in the cross-border use of the asset.

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.

In March 2023, it became known that the decision of the Bank of Nigeria to replace old banknotes amid high inflation led to a shortage of cash and an increase in transactions using eNaira.

Found a mistake in the text? Select it and press CTRL+ENTER