CBN Engages Payment Service Providers, Fintechs For eNaira Adoption

The Central Bank of Nigeria, CBN has engaged payment service Providers and fintech companies for a wider adoption of the eNaira.

The regulator also said that eNaira will work with other countries’ digital currencies.

Also, CBN has also revealed that it is not in competition with Deposit Money Banks (DMB) or other payment systems.

It said, DMOs and other payment systems are key stakeholders in the wider adoption of the digital currency.

The apex bank made this know during an engagement summit with payment service providers and fintech companies in Lagos.

The stakeholders met to discuss options for increasing a wider adoption of the digital currency.

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Present at the session include PSB, switching and processing companies, mobile money operators, payment service providers and payment terminal service providers.

Others include the Chartered Institute of Bankers of Nigeria (CIBN), Nigerian Inter-Bank Settlement System (NIBSS), Shared Agent Network Expansion Facilities (SANEF) and the Committee of eBanking Industry Heads.

Director, Information Technology Department (ITD) at the CBN, Rakiya Mohammed, said synergy is necessary for wider CBDC adoption.

She enjoined payment service providers to help bring the general public onboard the eNaira train through innovative services.

The Director also urged the stakeholders to develop solutions for offline eNaira functionality to accommodate the unbaked Nigerians.

Also, Mohammed said the stakeholders can help in the onboarding by developing eNaira cards, eNaira wearables and USSD.

According to the director, onboarding the digital currency would take place in four phases, culminating in offline eNaira payments solutions.

Others are cross-border payment and interoperability of the eNaira with other CBDCs.

Implication:

With the synergy among the stakeholders and the CBN, the digital currency will soon have wider adoption.

Despite its launch, the Nigeria’s digital currency has experienced sluggish adoption.

According to statistics, downloads so far, across 160 countries only amounts to 488,000 consumer wallets and 78,000 merchant wallets.

Also, CBN says eNaira has only completed 17,000 transactions in the tune of N62 million, with the average transaction being about N3, 800 each.

Nevertheless, the International Monetary Fund (IMF), last week, said the eNaira has greater prospects.

IMF noted that the CBDC will increase remittances to Nigeria.