Summary:
- Adoption of the eNaira is facing headwinds as only 0.5% of Nigerians use it
- The Nigerian Government is looking to boost adoption by offering 5% discounts for its use in transactions related to the popular Three-wheeler taxi business in the country
- Nigeria has a history of clamping down on crypto and could be one reason there is a reluctance to use the eNaira
Nigeria’s Central Bank Digital Currency (CBDC), the eNaira, is facing adoption hurdles a year after being launched by the country’s central bank. The eNaira has so far managed to maintain a less than 0.5% adoption rate amongst Nigerians leading the Government to look for new ways to encourage its use in the country.
Nigerian Government to Offer 5% Discounts for its Use in Transactions Centered Around 3 Wheeled Taxis
As a result, the Nigerian Government is looking for ways to boost its use. In particular, it is offering a 5% discount on all eNaira transactions related to payments for services related to Nigeria’s popular three-wheeler taxis, locally known as Keke Napep.
Central Bank Had First Started Cracking Down on Crypto and Could be Causing Confusing with the eNaira
The eNaira’s adoption rate could also be a consequence of confusion as the Nigerian Central Bank had initially cracked down hard on the use of cryptocurrencies before doing a u-turn with the launch of the CBDC last year. The Central Bank is yet to clarify to Nigerians the difference between crypto and the eNaira and has still recommended local banks from transacting with crypto exchanges.
23-year-old driver Hamed Lawan told Bloomberg, ‘Why is it asking us to collect eNaira? I thought the Government said cryptocurrency is bad?’
Adamu Alidu, another taxi driver in Abuja, said, ‘Did you say eNaira? I don’t even have a bank account, let alone an eNaira account. Me, I don’t know anything about it.’
Nigeria’s Central Bank Has a Major Task of Educating Nigerians About the eNaira
Therefore, the Nigerian Central Bank has a massive task in educating the country’s citizens on the eNaira and why it is beneficial for use.
Other Countries are Watching the CBDC Implementation in Nigeria
At the same time, Nigeria’s implementation of a CBDC is a huge step that has other countries watching.
Josh Lipsky, senior director of the Atlantic Council’s GeoEconomics Center, explained, ‘Nigeria’s project is hugely important to the world. My bottom line on Nigeria is the jury is still out, but the world is paying close attention to what they’re doing.’
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.