⚠️ HRF CBDC ⛓️🪙 alert from HRF for Nigeria (15-MAR-2024)
🗝️ℹ️ (Key Information)
CBDC Status: Launched
CBDC Launch: 2021-09-30
CBDC Model: Retail
CBDC Issued: ¤12,903,226
Inflation Rate: 18.85%
One-Sentence Summary:
Despite attempts to encourage usage, Nigeria's CBDC, the eNaira, has faltered in adoption rates leading to civil unrest, amid concerns over corruption and oppression.
✅ 🇳🇬 launched its CBDC, the eNaira, in 2021. Interface through the eNaira Speed Wallet app and transactions are made using a platform by Bitt Inc. on a Hyperledger Fabric ledger.
✅ Users are limited in daily transactions and balances based on supplied personal information. After giving a phone number, users can open a wallet but cannot spend more than $26 a day or own more than $156 in total.
✅ Despite efforts in 2022 to lift restrictions and provide discounts for CBDC use, adoption remained at just 0.5 percent leading the central bank deputy governor to suggest government intervention.
✅ By December 2022, a government-created cash shortage led to protests, but the central bank governor remains firm on achieving a completely cashless economy, despite reports that 98.5% of eNaira wallets remained unused.
✅ In 2023, the Central Bank of Nigeria sought new technology partners for CBDC improvement and later announced changes to the CBDC, such as offering contactless payments. By 2024, Gluwa partnered with the bank to aid in eNaira's adoption.
✅ Freedom House scored Nigeria 43 out of 100 in their 2023 Freedom in the World report, citing concerns over corruption and oppression, crucial factors considering the government's push for a cashless economy using CBDC.
✅ The pervasive corruption in Nigeria sets uncertainty over CBDC policies and the potential misuse for political favoritism.
✅ Reports by Amnesty International indicate the government historically quashes dissent, raising fears that a CBDC might be used to control citizens' finances.
#CBDCFailure #Nigeria #HumanRightsViolation #CashlessEconomy
End Thought:
Could the failure of Nigeria's eNaira be a valuable cautionary tale for nations currently adopting or considering the adoption of their own CBDCs? Why or why not?
Disclaimer: This is an AI-generated summary of the original text from HRF, forigve fuck-ups plox. If you find it useful, ⚡ the Tracker Bot because the AI and Cloud bits are not free to run.
Source of data: https://cbdctracker.hrf.org/home (npub1zhqcda52mrvcc0vkwegwsp5xtpk6l6x5kqx85f06tu9lw5h6xx0scch0dw)
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