Central Bank Digital Currency in Nigeria: Opportunities and Risks

Peterson Ozili

A chapter in The New Digital Era: Digitalisation, Emerging Risks and Opportunities, 2022, vol. 109A, pp 125-133 from Emerald Group Publishing Limited

Abstract: Purpose:Nigeria is the first African country to issue a central bank digital currency (CBDC) or fiat digital currency. The eNaira CBDC was issued as a money equivalent to be used along with paper Naira. This chapter identifies the features, opportunities and risks of the CBDC in Nigeria, also known as the eNaira. Method: This chapter uses the discourse analysis method to assess the opportunities and risks of CBDC. Findings:The opportunities which CBDC present to Nigeria include improved monetary policy transmission, convenience, efficient payments and increased financial inclusion. Some identified risks include digital illiteracy, increased propensity for cyber-attacks, data theft and the changing role of banks in a full-fledged CBDC economy. Originality:This chapter contributes to the literature by evaluating the pros and cons of fiat digital currency such as a CBDC.

Keywords: Central bank digital currency; eNaira; blockchain; cryptocurrency; CBDC; Nigeria; E51; E58; N17; O55 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Working Paper: Central bank digital currency in Nigeria: opportunities and risks (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:csefzz:s1569-37592022000109a008

DOI: 10.1108/S1569-37592022000109A008

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