IMF sees room for eNaira improvement in first year assessment
Nigeria’s eNaira central bank digital currency (CBDC) is over a year old, and the International Monetary Fund (IMF) has a late birthday present for it, in the form of a working paper assessing its first year of performance. “Laudable,” said IMF researchers, but there were a few suggestions too.
The eNaira was the world’s second CBDC, premiering in October 2021, after the Bahamian Sand Dollar. The paper found its retail side were intermediated, but had no problems with latency, as it has yet to make its breakthrough beyond the initial adopters. The Central Bank of Nigeria’s (CBN’s) introduced a phased introduction, which put off two of the CBDC’s biggest goals – extending financial inclusion to the unbanked and facilitating remittances, as determined by IMF officials.
Related: eNaira is ‘crippled‘: Nigeria in talks with NY-based company for revamp
Only about 1.5% of wallets are active on any week, and there were only a total of 802,000 transactions during the timespan examined. The figures represent less than one per wallet and less than 1% of bank accounts in the country have wallets. The paper observed:
Mobile money operators (MMOs) have a vast network in Nigeria, and the eNaira’s relationship to that network is a key question mentioned in the paper. The CBDC could compete with the MMOs on the retail market or facilitate MMOs’ operations by providing a bridge between them. The paper called the eNaira’s replacement of all the MMOs’ services “hard to imagine,” but also noted that a bridge function could set off a difficult “industry reshuffle.”
CoinW Africa Today#Nigeria was the second country after Bahamas to roll out a CBDC. Following Nigeria’s October introduction of e-Naira, #SouthAfrica and #Ghana are running pilots
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