Nigerian Central Bank Unveils Game-Changing Technology for its CBDC
Despite leadership changes, Nigeria's Central Bank enhances its eNaira app with NFC, making payments smoother and promoting broader usage.
The Central Bank of Nigeria (CBN) is still focused on its digital currency project called the CBDC, despite the removal of its former governor. The bank recently improved its mobile app for the CBDC by adding Near Field Communication (NFC) technology.
This new technology allows mobile devices and payment machines to communicate when they are near each other, making eNaira payments easy and contactless. The bank has stated that adding NFC will help more people to start using the CBDC.
The deputy director of the CBN's risk management department, Joseph Angaye, shared that the bank plans to keep using new technology to make the user experience better. He also shared that the CBDC will have features that can be programmed.
According to Angaye, these programmable features could be used to limit CBDC payments to certain government programs only, reducing the risk of fraud. For example, these features could make sure that funds for farmers can only be used for buying tools, preventing misuse of the money.
Angaye also mentioned the many benefits of the CBDC for people in Nigeria, like reducing settlement risks and making transactions faster. He also stressed that the eNaira can help include more people in the financial system.
However, fewer people than expected have started using the eNaira since its launch in 2021. As a result, the central bank is exploring different ways to encourage more use of the digital currency. Godwin Emefiele, the former governor of the CBN, blamed commercial banks for slowing the growth of eNaira because they are focusing on their profits.
Reported by Coinpaprika News
