IMF lauds Nigeria's digital currency, eNaira

2021-11-18 16:22:54
IMF lauds Nigeria's digital currency, eNaira

The International Monetary Fund (IMF) has commended the launch of Nigeria's digital currency, the eNaira and revealed that the currency has been attracting global attention since its launch few weeks ago.

In its 'Country Focus' article on Nigeria authored by Jack Ree of the African Department and published in its website, the IMF noted that like digital currencies elsewhere, the eNaira carries risks for monetary policy implementation, cyber security, operational resilience, and financial integrity and stability.

The fund noted that although the digital currency was expected to increase financial inclusion and facilitate remittances, the Central Bank of Nigeria should be prepared to manage the potential risk associated with managing a digital currency.

Noting that Nigeria's eNaira was the second central bank-backed digital currency (CBDC) fully open to the public after the Bahamas, the IMF stated that countries and regions, such as China and the Eastern Caribbean Currency Union had been conducting CBDC pilots with a subset of their citizens.

With the launch of the eNaira on October 25, Africa’s most populous country became the latest country to launch a digital currency, leapfrogging many other central banks around the world.

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