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eNaira No Threat To Financial Stability-CBN
Yinka Olajoyetan, Lagos
The Central Bank of Nigeria (CBN) has refuted reports that the eNaira is a threat to the nation’s financial stability.
In a statement signed on Monday by the banks Director, Corporate Communications, Isa AbdulMuminPhD, the bank said that such reports, which appears to have been syndicated, lack understanding of portions of the bank’s recently released Economics of Digital Currencies: A Book of Readings.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to news items on some
media platforms –traditional and social –suggesting that the country’s Central Bank Digital Currency (CBDC), the eNaira, is a threat to the nation’s financial stability.
“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.
“Pursuant 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.
“One of the media 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.’ The nexus implied is unconvincing.
“In the ordinary course of things, the CBN does not join issues on news commentary; however, we are constrained to clarify the reports to ensure that misunderstandings are not fostered.
“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,” the CBN statement reads