The Nigerian Central Bank Targets Tenfold Increase of CBDC Users

The Nigerian Central Bank Targets Tenfold Increase of CBDC Users

Despite the slow acceptance of the e-naira digital currency by Nigerians, the Central Bank of Nigeria Governor has said his institution is targeting a tenfold increase in the number of users of the digital currency in the next twelve months. The Governor predicted that the use of cash will "dissipate to zero" while the "use of digital currency will increase to become part of our lives."

E-Naira to Become Available to All Nigerians

Ten months after its launch, the app for the Nigerian Central Bank Digital Currency (CBDC)—the e-naira—has now been downloaded 840,000 times, a report has said. This revelation suggests that less than one million Nigerians have acknowledged the digital currency that the CBN hypes as a better alternative to volatile cryptocurrencies.

The revelation of the number of times the e-naira app has been downloaded follows reports of growing Nigerian interest in cryptocurrencies. Bitcoin.com News reported that a survey found Nigeria to be the country most obsessed with cryptocurrencies. The Kucoin survey had earlier found that as many as 33.4 million Nigerian adults are cryptocurrency users.

Although the CBDC is less popular than cryptocurrencies, the Central Bank of Nigeria (CBN) is hopeful of a tenfold increase in the number of e-naira downloads in the next 12 months. According to CBN Governor Godwin Emefiele, the objective of the Central Bank is to ensure that the CBDC is available to all Nigerians. Remarking on this objective, Emefiele, who spoke at a Central Bank-sponsored hackathon, said

"Just like the naira, the e-naira is expected to be available to all Nigerians and will provide more possibilities to bring the unbanked into the digital economy."

To ensure the CBDC becomes available to all Nigerian adults, the CBN revealed that starting on August 22, the e-naira will become available to all unbanked adults. Emefiele reportedly said prospective users can access the e-naira by dialing 997 on their mobile phones.

Explaining the CBN’s decision to introduce the digital currency, Emefiele said Nigeria had no choice but to embrace emerging technologies. The Governor also predicted that the use of cash will "dissipate to zero" while the "use of digital currency will increase to become part of our lives."