CBDC has the potential to boost Nigeria’s GDP by $29 billion over the next 10 years.

In a recent speech, Nigerian President Muhammadu Buhari suggested that the new e-naira central bank digital currency (CBDC) could increase the value of his country’s GDP by $29 billion in ten years.

In his speech at the e-naira CBDC launch on Monday, President Buhari stated, “Indeed, some estimates indicate that the adoption of CBDC and its underlying technology, called blockchain, can increase Nigeria’s GDP by US$29 billion over the next 10 years.” In addition to increasing Nigeria’s GDP, President Buhari suggested that such a digital currency could aid in the transition of more people and businesses from the informal to the formal sectors.

Although he acknowledges that many countries are still in the research and development stages, Nigeria’s president insists that the Central Bank of Nigeria (CBN), which he claims has been researching CBDCs since 2017, is well-positioned to launch the digital currency.

In his speech, which was published by Premium Times, Buhari explains why he agreed to the CBN’s request to investigate the possibility of issuing Africa’s first CBDC. He elaborated:

This move was underpinned by the fact that the CBN has been a leading innovator in the form of money they produce, and in the payment services they deploy for efficient transactions. They have invested heavily in creating a payment system that is ranked in the top ten in the world and certainly the best in Africa.

The E-Naira will improve the effectiveness of monetary policy.

According to the president, the CBN is qualified to issue the e-naira because of this payment system, as well as the central bank’s support of several private sector initiatives to improve the existing payments landscape.

Despite his high praise for Nigeria‘s financial system, President Buhari stated that the CBDC pilot phase will need to be closely monitored and supervised. Finally, if tested successfully, the e-naira is expected to boost remittances, foster cross-border trade, improve financial inclusion, and make monetary policy more effective.

Patrick

Coincu News