Reports that eNaira is a threat to Financial Stability, seemingly shows lack of misunderstanding - CBN

The Central Bank of Nigeria, CBN, says reports in some traditional and new media, suggesting that its digital currency, the eNaira is a threat to the Nation's financial stability, “seems to be lack of understanding of portions of the Foreword, and some articles, in the banks recently released Economics of Digital Currencies: A Book of Readings.”

Fresh Angle International can report that the apex bank made the clarification in a statement released today, Monday October 9.

The statement signed by Director, Corporate Communications of CBN, Isa AbdulMumin PhD, averred: “ The attention of the Central Bank of Nigeria (CBN) has been drawn to news on some media platform – traditional and social- suggesting that the country’s Central Bank Digital Currency (CBDC), the eNaira is a threat to the nation's financial stability.

“After reviewing the reports, which appear to have been syndicated, there seems to be lack of understanding of portions of the Foreword, and some articles, in the banks recently released Economics of Digital Currencies: A Book of Readings.

“A reoccurring theme in the book, is the interest of regulators, such as CBN, in the role of

cryptocurrencies as speculative investments and the potential threat they harbour for financial stability. Pursuant to that, the articles in the book, provide an in-depth understanding

 of CBDCs generally and the workings of the eNaira in particular, highlighting issues and challenges.

“One of the media reports speaks of "concerns about Nigeria's Central Bank Digital Currency eNara, indicating potential risks to financial stability, despite its success in narrowing the country's financial inclusion gap.” The nexus implied, is unconvincing. In the ordinary course of things, the CBN does not join issues on news commentary: however, we are constrained to clarity the reports to ensure that misunderstandings are not fostered.

“The eNaira structure continues to evolve and undergo modifications targeted at improving the user experience across all interface. We encourage Nigerians to embrace the technology for, amongst other things, greater inclusion.”

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