Central Bank Digital Currency a Threat to Financial Stability — Nigerian Central Bank Study
Despite the role it has played in narrowing the financial inclusion gap, the e-naira central bank digital currency still poses a risk to financial stability. In addition to bolstering the financial inclusion rate, the central bank claimed that the CBDC would “widen the size and stability of banks’ deposit base.” Nigeria’s Financial Inclusion Rates According to a new Central Bank of Nigeria (CBN) study, the country’s nearly two-year-old e-naira central bank digital currency (CBDC) poses a risk to financial stability. This is despite the fact that such a digital currency can potentially help improve Nigeria’s “financial inclusion rate from 64.1 percent recorded in 2021 to the 95.0 percent target for 2024.” Launched in late October 2021, the e-naira, which was championed by former CBN governor Godwin Emefiele, has not been widely received by the Nigerian population. As previously reported by Bitcoin.com News in August 2022, there were fewer than one million downloads of the e-naira