Nigeria's CBDC 'a Safer Option' Than Privately Issued Cryptocurrencies: Central Bank Official

[XiNFiNiTY]

As part of the Central Bank of Nigeria (CBN)’s digital currency charm offensive, Folashodun Shonubi, the institution’s deputy governor, has claimed that the country’s upcoming central bank digital currency (CBDC) will be a “safer option from privately issued cryptocurrency.”

Payment System Stability

In addition, the CBN’s digital currency — also known as the e-naira — is expected to complement current areas of payment options. This, according to Shonubi, will ensure “the stability of the payment system in the long run.”

Meanwhile, in his other remarks as reported by Nairametrics, Shonubi suggested that the CBDC will carry the same promises and have the same functions as the fiat naira. The deputy governor explained:

The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.

When fully implemented, Shonubi said he expects to see “rapid inclusion rates” in the coming days. Also, when the CBDC rollout is complete, the e-naira will be distinguishable from privately issued cryptocurrencies that have so far “been used for investment.”

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