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CBN Refutes Viral Report Regarding eNaira’s Impact on Financial Stability

Published

7 months ago

October 9, 2023

Stella Charles Akupue

The Central Bank of Nigeria (CBN) has firmly denied recent reports suggesting that the nation’s digital currency, eNaira, threatens the country’s financial stability. This clarification comes via a statement issued Monday by the Director of Corporate Communications at CBN, Isa AbdulMumin.

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The CBN’s statement, titled ‘eNaira No Threat To Financial Stability,’ reads as follows: “The Central Bank of Nigeria (CBN) has taken note of news articles circulating on various media platforms, both traditional and social, claiming that the country’s Central Bank Digital Currency (CBDC), the eNaira, poses a risk to the financial stability of the nation.

The Central Bank of Nigeria (CBN) has refuted reports suggesting that the eNaira, the country's digital currency, poses a risk to financial stability. Read the CBN's response to the concerns raised.

“After a thorough examination of these reports, which appear to have been widely circulated, it appears that there is a misinterpretation of certain sections of the Foreword and specific articles contained in the recently published ‘Economics of Digital Currencies: A Book of Readings’ by the CBN.

“A recurring theme throughout the book is the regulatory interest of entities such as the CBN in cryptocurrencies as speculative investments and the potential challenges they may present to financial stability.

CBN’s Response to eNaira Concerns

In line with this, the articles within the book provide an in-depth understanding of CBDCs in general and the mechanics of the eNaira in particular, shedding light on issues and obstacles related to its implementation and adoption.

“One of these media reports expresses concerns about Nigeria’s central bank digital currency, the eNaira, implying potential threats to financial stability despite its success in reducing the country’s financial inclusion gap.

Clarifying Misunderstandings and Emphasizing the eNaira’s Evolution

The implied connection appears unconvincing. Typically, the CBN refrains from engaging in debates related to news commentary; nonetheless, we feel compelled to clarify these reports to prevent any misconceptions from taking root.

“The eNaira’s structure is continuously evolving and refined to enhance the user experience across all interfaces. We encourage Nigerians to embrace this technology for various purposes, including fostering greater financial inclusion.”