• The Nigerian government has introduced a Central Bank Digital Currency (CBDC), the eNaira, to its financial system.
• Restrictions on cash withdrawal have been put in place by the government in an attempt to drive consumers toward alternative options like the CBDC.
• Many Nigerians understand that these regulations are mostly about financial control and pushing a cashless policy where the government has complete control over citizens.
Heritage Falodun, a Bitcoin consultant and computer scientist based in Nigeria, presents an opinion editorial about Nigeria’s introduction of a Central Bank Digital Currency (CBDC), called eNaira, into its financial system.
The Launch of eNaira
The launch of the eNaira paved the way for different sets of financial policies, regulations and restrictions from the country’s central bank. In order to drive consumers towards alternative options such as CBDCs, the Nigerian government has limited cash withdrawal from banks to around 100,000 naira per week with a daily limit of 45 USD (around 21,000 NGN). This is yet another example of how Nigeria’s economic landscape continues to be volatile since the introduction of eNaira. According to Godwin Emefiele, Governor of Central Bank of Nigeria, this step was taken “to ensure that more people in this country are financially included”. He believes that people should find CBDCs to be beneficial given its ability to address issues such as inflation, monetary censorship & cross-border payments among others.
Unbanking The Banked?
However it appears that contrary to expectations; instead of banking the unbanked; it is slowly becoming un-banking for those who already had access – i.e., forcing them into a cashless Keynesian economy with their surveillance CBDC – eNaria as final destination. An example is Oluwasegun Kosemani’s tweet wherein he stated how he spent 1000 NGN via his Naira @Mastercard by GTBank only to buy 10k NGN from PalmPay POS – thus signifying how even those who had access were being forced into cashlessness involuntarily due to stringent policies set by Nigerian Government.
The Cost Of Financial Control
Ultimately it seems that these regulations are mostly aimed at exerting complete control over all citizens while they push their own agenda towards a fully digitalized economy and away from physical currency transactions – something which will definitely not be free from costs considering all associated risks involved with digital transactions such as cybercrime & privacy breaches etcetera .
In conclusion it can be said that while most Nigerians understand why these steps have been taken especially considering current circumstances; however some believe that there may be other ways through which progress can be made without compromising individual freedom or rights – something which may require further examination before going ahead with any drastic changes pertaining Nigerian Financial System .