Even after more than a year of running Nigeria’s CBDC eNaira is still unable to make a significant impact . The vast majority of Nigerians are opposed to it . However it is not the only issue at hand . The latest IMF study indicates that the underlying issues are more serious .
eNaira’s Adoption Is Hindered Because Infrastructural Problems
One of the most important financial events of 2021 was the introduction of the Nigerian CBDC . While the authorities have acknowledged the ambitious nature of their initiative early responses have been less than ideal . Despite “commendable” performance the Nigerian public usually shuns eNaira . According to the IMF’s latest review of the Nigerian CBDC’s output this is the case .
The eNaira will have processed just around 802,000 transactions after more than a year of use . This applies to just 1% of all portfolios each and every week . While less than one percent of Americans with checking accounts carry wallets .
IMF Suggests Several Solutions to This Problem
The Nigerian CBDC is now a long way from achieving these pipe dreams . Because MMOs provide superior convenience and convenience at a lower cost than eNaira . The IMF adds that stopping this tendency would need a lot of creative thinking .
“As with all network products with similar characteristics such as credit cards, breaking the initial equilibrium of low adoption requires a mixture of shrewd strategies and luck” the research notes .
The World Bank claims there is hope for the current scenario and that the acceptance rate of eNaira may be increased . One option is to establish a mechanism to mediate monetary transactions .
Alternativelys shopkeepers might be encouraged to accept eNaira . On the other hand the efforts of the Nigerian government in this regard have so far been fruitless . In addition the IMF stresses how “difficult to imagine” a reversal of this trend would be .
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