CBDC of Nigeria

CBDC of Nigeria is attracting global interest, IMF warns of associated risk

CBDC of Nigeria is attracting global interest from the many institutions globally including central banks, revealed IMF in a report authored by economist Jack Ree. The author has also warned about the associated risks for monetary implementation, cyber security, operational resilience, and stability.

A report on CBDC of Nigeria:

Economist Jack Ree has authored a country focus report by the IMF, stating how the CBDC of Nigeria is attracting a lot of interest from the outside world and central banks in particular. The author has praised the Central bank digital currency (CBDC) of Nigeria in many ways. He further stated that the e-naira features stringent access rights control by the central bank unlike crypto tokens (BTC, ETH).

CBDC of Nigeria

A report by IMF has discussed the volatility of the e-naira and crypto and called the e-naira superior to crypto. The central bank of Nigeria is hoping that this project of e-naira will bring multiple benefits to the Nigerian economy. The report has discussed extensively that why the central thinks that CBDC of Nigeria will bring remittances into the country. The report explained:

“Remittances typically are made through international money transfer operators (e.g., Western Union) with fees ranging from 1 percent to 5 percent of the value of the transaction. The e-naira is expected to lower remittance transfer costs, making it easier for the Nigerian diaspora to remit funds to Nigeria by obtaining eNaira from international money transfer operators and transferring them to recipients in Nigeria by wallet-to-wallet transfers free of charge”.

The report has also included the associated risks with CBDC of Nigeria by saying “relying as it does on the digital technology, there is a need to manage cybersecurity and operational risks”. These were the views of IMF but I think that the institution has forgotten that crypto is growing fast due to its idea of no control.

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About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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