The bank believes that this decision will result in an increase in the number of transactions that take place on the central bank digital currency (CBDC) platform. The central bank also expects that a wider implementation of the CBDC will result in an increase in the volume of cross-border trade in Nigeria.
Increasing the Amount of Transactions Conducted Online
The Central bank of Nigeria (CBN) is rumored to have announced that it will cut the service fees incurred by individuals and businesses that use the digital currency platform by a factor of fifty percent. This is another move that is intended to boost the acceptance and utilization of the e-naira central bank digital currency (CBDC).
According to a survey, Nigerian companies that sign up to become e-naira merchants have the potential to raise the volume of their own individual e-commerce transactions by an additional fifty percent.
According to an article published by Daily Trust, which cites Kingsley Obiora, the deputy governor of the central bank, it has been suggested that if Nigerian businesses adopted the CBDC, it might enhance cash management and perhaps boost the country's cross-border trade volumes. Obiora said:
Increasing Participation in the Financial System
The comments by Obiora, who purportedly made them during an event for onboarding merchants, come just a few days after it was disclosed by CBN Governor Godwin Emefiele that the CBDC had fewer than 1 million users. However, according to a recent article published on Bitcoin.com news, the Central Bank of Nigeria (CBN) has set a goal to raise the number of people using e-naira by a factor of ten.
In order to accomplish this, Emefiele stated that the central bank will add a function to the CBDC that would allow customers to access it even if they did not have a bank account or a smartphone. Since then, the Central Bank of Nigeria (CBN) has introduced a code for unstructured supplemental service data (USSD), which it claims will broaden access to financial services.
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