Divergent reasons driving African central bank digital currency adoption identified by BIS survey
Nigeria, the economic powerhouse of Africa, has taken a significant step in digital currency adoption with the launch of its Central Bank Digital Currency (CBDC), the eNaira, in early 2025. However, despite being the second CBDC to be issued globally, the eNaira has struggled with adoption since its release in October 2021.
As of 10 months after its launch, the eNaira has seen a transaction volume of just $10 million, 840,000 downloads, and 270,000 active wallets. These figures are relatively low considering Nigeria's vast economy, with billions of dollars transacted every year and a population of over 200 million citizens.
Dr. Kingsley Obiora, the Central Bank of Nigeria's deputy governor for economic policy, acknowledged that the eNaira project is still in its pilot phase. This implies that the low adoption rates may be attributed to the project's nascent stage.
Nigeria is not alone in its CBDC journey. Countries like South Africa and Mauritius are also advancing their regulatory frameworks for CBDCs. However, Nigeria stands out as the only African country to have issued a CBDC and seen it circulate.
The Bank for International Settlements (BIS) has highlighted that design decisions, such as the type of CBDC adopted and the architecture of choice, can help mitigate concerns regarding issuing CBDCs. These concerns include cybersecurity threats, bank disintermediation, and low adoption, which have been identified as the top three worries for African central banks.
Interestingly, Ghana's digital fiat is unlikely to be built on blockchain, contrasting the decentralised nature of blockchain-based CBDCs like the eNaira.
Meanwhile, South Africa and Ghana are currently piloting their own CBDCs, indicating a growing interest in digital currencies across the continent. Other African countries are still in the research phase of their CBDC program.
The low adoption of the eNaira raises questions about the readiness of African economies for CBDCs and the challenges they might face in implementing and promoting these digital currencies. However, with continued research, development, and education, it is hoped that these issues can be addressed, paving the way for a more digital future for African economies.
Read also:
- Elon Musk Acquires 26,400 Megawatt Gas Turbines for Powering His AI Project, Overlooks Necessary Permits for Operation!
- U Power's strategic collaborator UNEX EV has inked a Letter of Intent with Didi Mobility to deploy UOTTA(TM) battery-swapping electric vehicles in Mexico.
- Commercial-grade hydrogen enhancement systems manufacturing initiated by H2i Technology
- Toyota strikes a deal in Shanghai for a solely owned Lexus electric vehicle production plant.
