With the successful launch of the eNaira, the International Monetary Fund (IMF) has said it will be working with the Central Bank of Nigeria (CBN) to advise other counties interested in deploying Central Bank Digital Currency (CBDC).
The IMF however noted that though the e-Naira has the potentials for Financial Inclusion and boost Diaspora remittances but could pose risks to Nigeria’s financial stability.
It therefore urged the CBN to watch the product with a view to properly managing risks that may arise from the initiative.
On boosting remittances, the fund said, “Nigeria is among the key remittance destinations in sub-Saharan Africa, with remittance receipts amounting to $24 billion in 2019.
The Fund in its Country Focus titled “Five Observations on Nigeria’s Central Bank Digital Currency” by Jack Ree of the African Department said the launch of the eNaira is “drawing substantial interest from the outside world—including from central banks” given the complexity of the Nigerian economy.
Noting that its Monetary and Capital Markets Department has been involved in the eNaira rollout process, including by providing reviews of the product design, the Fund said it “is ready to collaborate with the authorities on data analysis, cross-country studies, sharing the eNaira experience with other countries, and discussing further evolution of the eNaira including its design, regulatory framework, and other aspects.
The CBN had last week noted that some central banks from within and outside Africa has been in touch with it to understudy the eNaira which is the second CBDC fully open to the public after the Bahamas.
