Although the Central Bank of Nigeria (CBN) continues to tout the e-naira certificate as a tool to promote financial inclusion, some experts agree that this central bank digital currency (CBDC) does not currently do so.
CBDC chaos begins
This assertion and the brief removal of the e-naira app from the Google Play store seems to prove that CBN may have been launched in a hurry and is actually the first CBDC in Africa.
Although one report According to the Punch newspaper, CBN is now working to release a version of the e-naira app for people who don’t have a bank account, but it still doesn’t say when it might be available. This point of CBN is obvious, which makes Nigerian blockchain industry participants question the central bank’s ability to manage the CBDC.
As an encryption expert lead The author Cryptoassetbuyer explained that CBN has failed to introduce a digital currency that all Nigerians can use, which means that the central bank is unlikely to achieve its main goal of providing financial services to the unbanked population in Nigeria. Chiagozie Iwu, founder of Naijacrypto and CEO of CI Cryptosolutions, explained:
First, the app requires me to use the bank’s app to make transactions; what services does it offer me that the bank has not yet provided? So in my opinion, CBN is not aimed at people who do not have a bank account. Obviously, anyone who downloads apps on a smartphone should first have a bank account. The fact that I have to log in with my bank account is contrary to their statement that “deposit a non-bank account into the bank.”
Although CBN has repeatedly promised that its e-naira wallet will be available for non-smartphone users to use digital currency for transactions, the service is still unavailable at the time of writing.
CBN’s trust deficit
At the same time, according to Iwu, in addition to feature phone users not available, the e-naira application is likely to be a product of random planning. Although acknowledging that the e-naira application-just like other applications-may have some “errors”, Iwu said that this can be avoided if the CBN uses the funds set aside for the project correctly.
Another expert, Convexity’s CTO Charles Okaformbah, said that beta testing could have prevented CBN from publishing problematic applications. The report quoted Okaformba as saying:
I think that if application developers conduct a lot of testing — such as close testing of the application with selected people outside the development team — I believe some of these issues will be noticed and fixed.
Economist Lloyd Onaghinon believes that cooperation between CBN and Nigerian blockchain industry participants may produce better end products.
In its conclusion, the Cryptoassetbuyer report pointed out that there is a clear trust deficit, and CBN is responsible for solving this problem.
Do you agree that CBN may launch its CBDC in a hurry? Tell us what you think in the comments section below.
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