Logo
Munich Personal RePEc Archive

Central bank digital currency in Nigeria: opportunities and risks

Ozili, Peterson K (2021): Central bank digital currency in Nigeria: opportunities and risks. Forthcoming in:

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_110430.pdf

Download (684kB) | Preview

Abstract

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 alongside with paper Naira. This paper identifies the features, opportunities and risks of the central bank digital currency (CBDC) in Nigeria, also known as the eNaira. 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. This article contributes to the literature by evaluating the pros and cons of fiat digital currency such as a central bank digital currency.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.