CBN insists eNaira is no threat to financial stability

The Central Bank of Nigeria (CBN) has insisted that the adoption of the eNaira is not and never a threat to financial stability in the country.

The apex bank said contrary insinuations that the adoption of

the eNaira portends danger to financial inclusion; it explained that the country’s Central Bank Digital Currency (CBDC), the eNaira, indeed not only expanded financial inclusion but also was safe.

The Director, Corporate Communications of the CBN, Isa AbdulMumin, who reacted to reports of unsafe digital currency in Abuja, yesterday, said: “After reviewing the reports, which appear to have been syndicated, there seems to be a lack of understanding of portions of the Foreword, and some articles, in the bank’s recently released Economics of Digital Currencies: A Book of Readings. A recurring theme in the book is the interest of regulators, such as the CBN, in the role of cryptocurrencies as speculative investments, and the potential threat they harbour for financial stability.

“According to that, the articles in the book provide an in-depth understanding of CBDCs generally and the workings of the eNaira in particular, highlighting issues and challenges in implementation and adoption.”

He added: “One of the reports speaks of “concerns about Nigeria’s central bank digital currency, eNaira, indicating potential risks to financial stability despite its success in narrowing the country’s financial inclusion gap.”

While he declared that the CBN does not join issues on reports on its activities, it is constrained to clarify the reports to ensure that misunderstandings do not fester.

He admitted that the eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interfaces.

“We encourage Nigerians to embrace the technology for, amongst other things, greater financial inclusion,” he stated.