Central Bank Official says Nigeria’s CBDC ‘a Safer Option’ Than Privately Issued Crypto

Central Bank of Nigeria’s officials claimed that Nigeria’s CBDCs is safer than crypto assets. While Roll out for the CBDCs will start in the next month.

In the present time, Central Bank Digital Currency ( CBDCs) Of Nigeria is in light because of their controversies and statements. Roll out for the Nigerian central bank digital currency is scheduled for October 2021. 

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According to the report  by Nairametrics, Folashodun Shonubi, the institution’s deputy governor, stated on the digital currency of the Nigerian Central bank e-Naira. Shonubi claimed that e-Naira ( CBDCs of the Central Bank of Nigeria) will work similarly to the local fiat currency Naira. And also it will keep full stability in the market just like naira fiat currency.

The governor further explained 

“The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more”

So basically the deputy governor of CNB claimed that the Naira will take digital form and it will be used in the payment system, unlike crypto assets, which are not part of the legal tender of Nigeria. And also he claimed that instant payment will give high efficiency transactions.

Also Shonubi stated that when roll out of the CBDCs will complete, then we will be able to see the difference between the private crypto assets and Nigerian e-Naira “that have so far “been used for investment.”

However, the deputy governor of CBN talked about e-Naira in fully aggressive and positive way but still we have to look at those factors, where he thinks that CBDCs could lead into risk for the economy of the traditional financial system, on speaking at virtual event organized by the Chartered Institute of Bankers of Nigeria (CIBN). 

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