Some financial experts have urged the Central Bank of Nigeria to take cognizance of the impact its proposed digital currency might have on the country’s financial sector.
The experts spoke in separate interviews with the News Agency of Nigeria on Tuesday in Abuja, against the backdrop of the CBN’s proposed launch of the eNaira on October 1.
A financial expert, Mr Okechukwu Unegbu, urged the apex bank to be a bit more cautious about its proposed October 1 launch of the eNaira.
Unegbu, a past president of the Chartered Institute of Bankers of Nigeria said that the CBN needed to have engaged more with stakeholders to ensure that the financial sector does suffer unforeseen consequences after the digital currency is introduced.
“eNaira is another form of cryptocurrency, which the CBN has banned, and it seems that the apex bank is trying to imitate what it banned. The CBN needed to have done a very thorough research and engage stakeholders in the CIBN, ICAN and other relevant professional bodies, and also create sensitization on the currency. I learnt that the eNaira cannot be used for bank transfers; that will be detrimental to the Deposit Money Banks. If you bring out a product which people cannot understand they will not be able to use it,’’ he said.
An economist, Mr Tope Fasua, described the idea of eNaira as a welcome development. Fasua, who is the Chief Executive Officer of Global Analytics Consulting Limited, said that the idea of eNaira was commendable because all currencies would eventually become digital over time, saying the Naira should not be left behind.
“In actual fact, the Naira is already digital as it is because you can send money through Unstructured Supplementary Service Data (USSD) or through electronic transfer without the need to touch cash.
“But with the eNaira, digitalisation is going to a higher level, where we will increase focus on electronic financial transactions, which will come with its own type of innovations and improvements. But only those who get on board will benefit from the advantages of the digital currency,’’ he said.
According to the economist, electronic currencies, like the eNaira, allows central banks to print and manage fewer physical currencies, thereby saving huge revenue.
“It will benefit the Nigerian economy by saving a huge cost of managing physical cash and include more Nigerian in the financial sector. It will promote financial inclusion, as those who do not have bank accounts can easily key into the eNaira.
“It will also, eventually, help in tracking money laundering and fraud because it is all about the documentation of what people are doing. The data that will be generated will enable authorities to do their work better in preventing money laundering and fraud,’’ he said.