NIGERIA: The Central Bank of Nigeria’s eNaira continues to be higher at the 2022 PricewaterHouseCoopers (PwHC), a retail initiative index of the Central Banks Digital Currency (CBDC) Global Index.
The project, titled The Race to Digital Money, aided in explaining, evaluating, and placing the CBDC of each nation based on its retail and wholesale performance, as well as looking at the general public’s interest in the digital initiative, by judging through central banks’ opinions.
During this year’s PwHC investigation, it was discovered that more than 80% of Central Banks throughout the world are considering or have already implemented CBDC.
However, the Central Bank of Nigeria’s (CBN) eNaira, which is the first in Africa, was ranked first in this year’s retail project index study, according to the report.
The report also revealed that, on average, retail CBDC projects (digital currencies designed for public use) have matured faster than wholesale projects (digital currencies used by financial institutions with central bank accounts), with several successful wholesale pilots completed in the past year.
In 2020 China was ranked the first major economy to pilot a CBDC with Digital Yuan, and as of this year, the Yuan digital currency is seen operating in 12 different cities of China including the popular cities of Beijing and Shanghai.
According to Haydn Jones, a PwC UK Blockchain and Crypto Specialist, the global growth of digital currency can be ascribed to different countries’ desire in launching their own digital currency with the help of CBDC.
However, each country may have its own reasons for wanting to enter the digital sphere, but they are all succeeding in some way.
Jones also highlighted the importance of CBDC as it eases cross-border transactions and as well helps in having adequate control of financial crimes.
Nigeria e-Naira tremendous success can add up to the CBDC development in countries where financial inclusion is recommended.
The PwC’s United States Global Financial Services Leader, John Garvey advises the financial bodies to look into the CBDC project to learn and understand how it works as it will soon start flowing into payment platforms of banks.
“This is possible by consulting experts to clarify how the digital currency works,” Garvey said.
“One thing is certain, lowering the cost of payments in an economy provides value throughout the economy and for citizens. If CBDCs can ultimately enable more efficient payments, that will benefit everyone,” Garvey added.