Nigeria's Central Bank Dismisses Claims That Its CBDC Endangers Financial Stability

By: Mark Jessy

Nigeria's Central Bank Dismisses Claims That Its CBDC Endangers Financial Stability

October 11, 2023 9:14 AM

The Nigerian central bank has denied media allegations that its September 11, 2023 memo indicated that its e-naira currency poses a risk to financial stability. The central bank stated that it was obligated "to clarify the reports to ensure that misunderstandings are not fostered."


The Central Bank of Nigeria (CBN) has denied media accusations that the central bank digital currency (CBDC), dubbed e-naira, posed a risk to financial stability. The bank stated in an Oct. 9 statement that the authors of the reports did not grasp aspects of the foreword in its previously published paper.


The document, dubbed a "book" by the CBN, is titled Economics of Digital Currencies: Book of Readings. The central bank describes the book in the prologue as an attempt "to provide an in-depth understanding of CBDCs, generally and in particular, the workings of the e-naira." According to the introduction, the book also addresses "issues and challenges of implementation and adoption."

 

 


While the Nigerian central bank does not name the media outlets that produced the incriminating news pieces, Bitcoin.com News is one of several online news outlets that published reports based on the book.


Meanwhile, the CBN appears to take issue with one media article that used wording from the book on pages 106 to 111 to support the conclusion that installing a CBDC may be risky. The CBN is particularly enraged that the paper in question raised fears that a CBDC could jeopardize financial stability.

 

"The inferred link is unconvincing. In the normal course of events, the CBN does not join disputes in news commentary; nonetheless, we are compelled to clarify the stories in order to avoid misconceptions," the CBN stated.


The CBN concluded its statement by warning e-naira users to brace themselves for more changes and modifications to the CBDC aimed at improving user experience. In addition, the bank advised Nigerians to "embrace technology for, among other things, greater financial inclusion."