HomeNewsNigeria Revamps eNaira Model to Bolster Digital Currency Adoption

Nigeria Revamps eNaira Model to Bolster Digital Currency Adoption

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  • Nigeria is amending its eNaira model to encourage increased use of the central bank digital currency, according to the Central Bank of Nigeria (CBN).
  • Despite a substantial increase in eNaira wallets, adoption remains limited in a country of 224 million, prompting efforts to enhance service offerings and improve user experience.

In a bid to encourage greater adoption of the central bank digital currency (CBDC), Nigeria is modifying its eNaira model, according to a statement by the Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi.

Breathing Life into the eNaira

Introduced in October 2021, the eNaira saw a twelve-fold increase in wallet numbers, jumping to 13 million between October 2022 and March 2023. However, for a nation nearing a population of 224 million, these figures represent only a fraction of potential users. To address this, the CBN is focusing on enhancing its offerings and creating a more user-friendly experience.

Earlier in July, reports surfaced that the CBN upgraded the eNaira application to facilitate contactless payments, as per local news outlet The Sun. However, the bank remained silent on the specific alterations planned for the eNaira model and had not responded to requests for further information at the time of reporting.

The usage of eNaira, as it stands, presents challenges for many citizens. By March, the recorded value of eNaira transactions for the year amounted to 22 billion naira, equivalent to approximately $48 million at that time. In comparison, Nigeria boasts a $220 billion informal economy that primarily relies on cash transactions.

This robust cash-based economy, combined with an insufficient number of merchants and inadequate infrastructure for eNaira deployment, paints a clear picture of the barriers to widespread adoption.

By reengineering the eNaira model, the Central Bank of Nigeria is proactively responding to these challenges. The bank’s actions signify a strategic shift, underlining their commitment to nurturing a digital economy. However, successfully instigating change will necessitate not only technical advancements but also addressing the socio-economic factors hindering CBDC adoption.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628