Digital Currency Adoption In Nigeria: Q3 Industry Forum Committee Of E-Business Heads
Digital Currency Adoption in Nigeria: Q3 Industry Forum Committee of e-Business Heads
Everyone is asking themselves, as the Central Bank of Nigeria prepares to launch the E-Naira on October 1st, 2021, are we prepared for such a bold move? Because Nigeria will be the first country in Sub-Saharan Africa to adopt the use of digital currency, many people are concerned about the technology and how it will be implemented.
The Committee of E-Banking Industry Heads (Cebih) held its 3rd Quarter Industry Forum in Abuja on Wednesday, September 22, 2021, with the theme "Digital Currency and the Prospects of Central Bank Digital Currency in Nigeria." The forum, which had the theme "Digital Currency and the Prospects of Central Bank Digital Currency in Nigeria," discussed the adoption of digital currency. Various concerns, such as technology, adoption, financial inclusion, the impact on forex, and the value of the CBDC, were raised and debated during the session.
Regarding the significance of the e-adoption, naira's Mrs. Rakiya Mohammed, Director, Information and Technology, Central Bank of Nigeria, stated that the introduction of the e-naira can catalyze Nigeria's digital economy, boost cross-border trade, and allow for better macroeconomic policy formulation. She went on to say that as a result of digitization, macroeconomic policies will be more effectively formulated.
On the design of the e-naira, Muhammad stated that the design would be revealed soon after the central bank has completed its development. She went on to say that the e-naira, like the fiat naira, will be considered legal tender. It will not be used to replace the naira, but rather to supplement it, and the anonymity of transactions is ensured.
Experts from the Blockchain industry who were in attendance at the event expressed concern that this move may not have the intended effect of increasing financial inclusion, despite the fact that it provides the advantage of cheaper and more efficient financial transactions. It was stressed by Chimezie Chuta, the coordinator of the Blockchain Nigeria User Group, that the introduction of the e-Naira will not solve the country's financial inclusion problem. Instead, the introduction of the digital currency will address the encroachment of private e-currencies, but the solution, according to the government, is inadequate because the e-naira does not address the key drivers of private e-currencies. Chuta, on the other hand, claims that the e-naira will save a significant amount of money by eliminating the need for printing, management, and distribution of the naira.
Adeyemi Atanda, the Chairman of the CeBIH, praised the Central Bank of Nigeria's (CBN) e-naira initiative. He went on to explain that there must be an incentive for people to keep their money in naira, but the e-naira does not provide such an incentive. He, on the other hand, believes that this can be offset by the fact that transactions carried out using e-naira are carried out at close to zero cost, allowing the end-user to save money. "When you hear the word e-naira, think of it as a transactional currency rather than an investment." Lots of people are making a mess of things at this point. You can't make a comparison between it and cryptocurrency. In contrast to traditional financial instruments, cryptocurrency is primarily used for investment purposes. "The e-Naira is primarily used for transactional purposes." He reassured Nigerians that the Central Bank of Nigeria (CBN) and the banking sector are well-prepared to deal with fraud and other cyber security challenges that may arise as a result of the introduction of the e-naira. "We have been very innovative in our efforts to prevent fraud to the greatest extent possible," he explained. Every single one of the lessons we've learned in digital banking for managing fraud, including things like second factor or multi-factor authentication and encryption, as well as other innovations, will still be applicable in this situation." A number of the international speakers who were invited to speak also discussed how they have embraced digital currency, with the general consensus being that while much is still in the early stages, the currency will eventually go digital.
Several delegates from the CEBIH executive members, led by Chairman Adeyemi Atanda, traveled to the Ministry of Science, Technology, and Innovation the day before the event to discuss how the committee can collaborate with the ministry on issues such as leveraging technology for financial inclusion, testing innovative inventions for financial services, and capacity development. The team also paid a courtesy visit to Mrs. Aishah N Ahmad, the Deputy Governor for Financial Systems Stability at the Central Bank of Nigeria, and they paid a visit to the National Information Technology Development Agency, where they were welcomed by Kashifu Inuwa Abdullai, CCIE, the Director-General of NiTDA.
The Committee of e-Business Industry Heads (CeBIH) is comprised of the upper echelon of electronic business industry practitioners from all Nigerian banks, with Adeyemi Atanda serving as chairman and Oluremi Tinolu- Gabriel serving as vice chairman. Adeyemi Atanda is the first woman to hold the position of chairman of the CEBIH.
