Nigerian President Muhammadu Buhari, in a recent speech, suggested that the new e-Naira central bank digital currency (CBDC) could increase the value of his country’s GDP by $ 29 billion in ten years.
Africa’s first CBDC
President Buhari made a bold remark in his speech at the launch of e-Naira CBDC on Monday: 10 years. ”In addition to boosting Nigeria’s GDP, President Buhari suggested that this national digital currency could help move more people and businesses from the informal sector to the formal sector.
Although he acknowledged that many countries are still in the research and experimental stages, the Nigerian leader stressed that the Central Bank of Nigeria (CBN) – which he said has been investigating CBDCs since 2017 – is in a good position to introduce digital currency.
In his speech, published by Premium Times, Buhari gave reasons for approving the CBN’s request to explore the possibility of issuing the first CBDC in Africa now. He explained:
The move was influenced by the fact that CBN has become a leading innovator in the form of their money and the placement they make for efficient transactions in payment services. They have invested heavily in creating a payment system that ranks in the top ten in the world and is certainly the best in Africa.
E-Naira to increase the effectiveness of monetary policy
According to the president, it is on the basis of this payment system – as well as support for various private-sector initiatives of the central bank to improve the existing payment landscape – that CBN is eligible to issue e-Naira.
However, despite his high appreciation of Nigeria’s financial system, President Buhari said the pilot phase of the CBDC rollout needs to be closely monitored and supervised. Finally, if successfully tested, e-Naira is expected to help increase remittances, encourage cross-border trade, improve financial inclusion and make monetary policy more effective.
What do you think of President Buhari’s remarks about e-Naira? Tell us what you think in the comments section below.
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