Central Bank Digital Currency in Nigeria (CBDC): The Appropriate Financial Alternative to Cryptocurrency?

Abstract

Central Bank Digital Currency is considered an appropriate response to the invasion of cryptocurrency innovation into the financial sector of the world economy. There are others, however, opposing views, as will be expected. Some of them stem from the misunderstanding of the roles played by central banking regulatory authorities. This paper thus examines the pros and cons of adopting eNaira Central Bank Digital Currency instead of legislating the authorization of cryptocurrency. A close examination of the features of both currencies shall be attempted with a view to projecting the study position. The study aims at providing the Nigerian regulatory body with ample reasons to act while it is still day and leverage on its regulatory control to strengthen its adoption of the eNaira as a viable alternative to cryptocurrency in its bid to ensure financial inclusivity for all Nigerians. The paper adopts the doctrinal research methodology which provide the opportunity for critical analysis of laws and literatures this area of discuss. The paper found that with the launch of the eNaira, Nigeria has become the first country in Africa and second in the world, after the Bahamas, to introduce a Central Bank Digital Currency.