Nigerian Central Bank Refutes Media Reports Suggesting Its CBDC Poses a Threat to Financial Stability

The Nigerian central bank has disputed media reports suggesting its Sept. 11, 2023 document implies that its e-naira currency poses a threat to financial stability. The central bank said it felt compelled “to clarify the reports to ensure that misunderstandings are not fostered.”

Book Gives an ‘In-Depth Understanding of CBDCs’

The Central Bank of Nigeria (CBN) has refuted media reports that its central bank digital currency (CBDC) known as e-naira, poses a threat to financial stability. In a statement issued on Oct. 9, the bank suggested that the authors of the reports lacked an understanding of portions of the foreword in its recently published document.

The document — or “book” as the CBN calls it — is titled Economics of Digital Currencies: Book of Readings. In the foreword, the central bank characterizes the book as an attempt “to provide an in-depth understanding of CBDCs, generally and in particular, the workings of the e-naira.” The foreword added that the book also highlights the “issues and challenges of implementation and adoption.”

While the Nigerian central bank does not identify the media outlets that published the offending news articles, News is among several online media outlets which published reports based on the book.

Meanwhile, in CBN’s statement, the bank also appears to take umbrage at one media report which used the book’s text on pages 106 to 111 to support the assertion that implementing a CBDC may pose risks. In particular, the CBN is seemingly incensed that the report in question highlighted concerns that a CBDC may pose a threat to financial stability.

The CBN said:

The nexus implied [is] unconvincing. In the ordinary course of things, the CBN does not join issues on news commentary, however, we are constrained to clarify the reports to ensure that misunderstandings are not fostered.

The CBN ended its statement by telling users of the e-naira to brace for more changes and modifications to the CBDC which are aimed at improving users’ experience. The bank also told Nigerians to “embrace the technology for, among other things, greater financial inclusion.”

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