e-Naira: CBN Speaks on Relationship Between Nigeria's Digital Currency and Banks
- The Central Bank of Nigeria has said the e-Naira is supposed to complement Deposit Money Bank
- Recent reports have shown that Nigerians prefer mobile money to the apex bank’s digital currency
- The CBN's e-naira’s benefit includes the deepening of the financial and payment systems, amongst others
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The Central Bank of Nigeria (CBN) said the introduction of e-naira was not to compete with Deposit Money Banks.
Joseph Angaye, a deputy director of CBN, disclosed this during an e-naira sensitisation forum held at the University of Abuja, according to Vanguard.
This is amid a report which indicated that Nigerians are shunning the CBN’s digital currency for mobile money.
However, a report by International Monetary Fund (IMF) assessed that the adoption could be improved in the country.
Source: UGC
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CBN highlights benefits of e-naira
Angaye said the e-naira has many benefits, which do not include replacing the existing payment system infrastructure.
He highlighted some of the importance as deepening the financial and payment systems, addressing challenges in the payment system infrastructure and complementing what is already on the ground.
He said:
“We are not introducing it to be a competitor to what the banks are doing or other service providers but to provide a platform they can leverage to provide more effective service."
He added that the digital currency will help promote financial inclusion and reduce congestion in the infrastructure to improve transaction completion.
This is in addition to providing services unavailable in the Nigerian system, such as facilitating payment when there’s no network.
His words:
“e-Naira has really evolved from the inauguration of the e-Naira by the former president almost two years ago, we’ve achieved a number of milestones, there have been further developments in terms of improving the functionality based on feedback we have been getting from various stakeholders.”
Angaye further said the concept behind the central bank's digital currency is relatively new globally, and Nigeria stands among the pioneer nations to adopt it.
CBN’s e-Naira ranks high as new report details top sources of fraud in banks
Meanwhile, in previous news, Legit.ng cited a report that challenged the CBN's assertion about the safety of the e-Naira.
According to findings from the Financial Institutions Training Centre (FITC), e-Naira ranks prominently as a source of fraud within Nigerian banks.
The report on Frauds and Forgeries reveals a staggering 209% increase in fraudulent activities during the third quarter of 2022.
Various platforms, including ATMs, web banking, and mobile app services, such as the e-Naira and PoS terminals, were exploited for these illicit activities.
Furthermore, the report highlights an approximate loss of N1.67 billion incurred through mobile apps, including the e-Naira.
Source: Legit.ng
