Biggest risk of issuing CBDC

Biggest risk of issuing CBDC → Irrelevance
e-Naira is Nigeria’s CBDC isn’t getting much adoption
Here is WHY Consumers are ignoring CDBT 👇

What is eNaira ?
The eNaira is the digital form of a national currency which uses blockchain tech. It is pegged at parity with physical Naira.

Central Bank of Nigeria envisaged 🧐 multiple benefits for e-Naira :

✅ Increase in financial inclusion
✅ Facilitation of remittances
✅ Reduced informal economy


IMF even predicted that e-Naira may be perceived as a deposit at CBN and can reduce demand for deposits in commercial banks

Everyone seems to join the trend:

- Kenya has just completed a CBDC public consultation
-  Ghana is working on a CBDC
-  Uganda is just starting to explore the concept

They talked about future Use Cases like :
— International Remittance
— Trans-border payment
— Blockchain
— Financial Inclusion
— Trade

CBN has added USSD codes to the eNaira for non-smartphones


🚨 BUT there have been challenges with the adoption of the eNaira.

There are 764K app downloads but almost half have never used the app. There are only 80 merchants on the platform.

Most merchants are not enthusiastic about using the platform — as it brings in taxation transparency.


eNaira and eventually all CBDCs will need to fight the informal economy
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❝The biggest challenge for digitalization is NOT tech implementation
— It is customer adoption❞


What do you think will happen next 🤔

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#DigitalBanking