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FameEX Hot Topics | Nigerian Central Bank Disputes Claims of CBDC Threatening Financial Stability in Media Reports

2023-10-11 16:30:55

The Central Bank of Nigeria (CBN) has firmly rejected recent media reports that suggested its central bank digital currency (CBDC), known as e-naira, poses a threat to the country's financial stability. This rebuttal came in response to a document released on September 11, 2023, which had been misconstrued by some media outlets. The CBN felt compelled to clarify its position and dispel any misunderstandings that may have arisen.

The document in question, titled "Economics of Digital Currencies: Book of Readings," was described by the CBN as an endeavor to offer a comprehensive understanding of CBDCs, with a particular focus on the functioning of the e-naira. Additionally, it aimed to shed light on the challenges and issues related to the implementation and adoption of CBDCs.

One media report, however, chose to focus on pages 106 to 111 of the document, using selected text to assert that the introduction of a CBDC could potentially introduce risks to financial stability. This interpretation did not sit well with the CBN, and it responded by stating: "The nexus implied [is] unconvincing. In the ordinary course of things, the CBN does not join issues on news commentary, however, we are constrained to clarify the reports to ensure that misunderstandings are not fostered."

In its clarification, the CBN emphasized its commitment to providing a transparent and secure e-naira experience for users. It acknowledged that modifications and improvements would continue to be made to the CBDC to enhance the user experience. Furthermore, the CBN encouraged Nigerians to embrace this technological advancement as a means to promote greater financial inclusion in the country.

In summary, the Central Bank of Nigeria has refuted claims that its CBDC, the e-naira, poses a threat to financial stability. It attributed these misconceptions to a misinterpretation of a document it had recently published. The CBN remains committed to advancing the e-naira and ensuring its security and usability while urging Nigerians to embrace this innovation for the betterment of the nation's financial landscape and increased financial inclusivity.

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