TL; DR Breakdown
- CBK Governor wants to develop a unique CBDC.
- He says the country is not focused on being the first to develop a CBDC.
- Nigeria’s CBDC faces challenges weeks after launch.
Central Bank Digital Currency has become a fast-adopted phenomenon across countries all over the world, with increasing plans of development. Even countries seemingly opposed to crypto are taking the initiative and making huge strides regarding the development of their own central bank-backed digital currency. This is because most countries believe that it would serve the population better in terms of faster service compared to the traditional payment methods. In this regard, Patrick Njoroge, the Governor of Kenya’s central bank, has said that the country is looking into developing its CBDC. With this, their focus is to develop it right instead of being the first to debut it.
CBK Governor not focused on being the first
In the Kenyan Wallstreet report, the CBK Governor says he would prefer that the CBDC focus on the facilitation of payments across the border. He gave his opinion about the digital currency at the Afro-Asia Fintech Festival that was held virtually. However, the report states that the CBK Governor has set sights on making the country’s CBDC completely different from that developed in other countries.
These statements came after Nigeria announced the launch of its CBDC, the eNaira. With the launch, Nigeria became the first country in the continent to debut a Central bank-backed digital currency. To add to its successful launch, the country’s central bank claimed that more than 500,000 individuals have signed up for a wallet with about $150,000 worth of transactions facilitated using the digital currency.
Nigeria’s CBDC faces challenges weeks after launch
Although Nigeria recorded success after the launch of its CBDC, the app started to malfunction some weeks back. This is one reason why it is no longer available for download as the premier bank continues to work on its CBDC. Also, some traders across the country are still at a loss at why the CBDC is pegged to the Nigerian Naira, especially at a period where the government has continued to crack down on digital assets.
Although the Wall Street media did not add Nigeria to its report, there are rumors that the CBK Governor has stressed a need for cooperation with other entities. According to the news, it will help strengthen the development of the CBDC against hack and other risks. Kenya is not the only country currently looking into the development of its unique CBDC. For example, Peru has reiterated its desire to create a CBDC that will have unique features while filling the gap in the country’s payment system.