What’s Cooking with the eNaira?
The Central Bank of Nigeria (CBN) is revamping its approach to the eNaira, its flagship central bank digital currency (CBDC). After an underwhelming launch, which left many Nigerians scratching their heads, the CBN is now enlisting some fresh tech talent to jazz up its digital currency experience. Enter stage right: new technology partners!
Partnering with Tech Giants
As reported by Bloomberg on February 21, the CBN is negotiating with a tech firm based in New York known as R3. This move is aimed at developing a revamped management system for the eNaira, allowing the CBN to grab the reins completely, unlike that one friend who always insists on driving when you just want to enjoy the ride.
Bitt Steps Aside, But Not Out
The initial journey of the eNaira started back in 2021 with the help of the company Bitt. While Bitt isn’t being handed their walking papers just yet, they’re not the sole focus anymore. Reports suggest that R3 will help transition control gradually to the CBN. In a statement, Bitt noted that although they’re sharing the stage, they’re still actively enhancing features for the eNaira. It’s like giving Bitt a quieter backstage role while the new partners take the spotlight.
The Struggles of eNaira Adoption
Despite its trailblazing spirit as one of the first nations to launch a CBDC, eNaira’s reception has been, shall we say, lukewarm at best. Reports indicate that only about 0.5% of Nigerians are actively using the CBDC, leading some to describe the ambitious project as “crippled.” It’s like hosting a party where only your cat shows up!
The Global CBDC Craze and Concerns
Nigeria isn’t alone in this digital currency expedition. Over 90 countries are exploring CBDCs, with nations like Russia and Japan readying themselves to unveil their digital cash soon. Meanwhile, tea has not been spilled quietly, as activists raise flags against CBDCs, dubbing them “surveillance” devices. Talk about a digital currency having a PR crisis of its own!
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