Latest News

eNaira, other CBDCs falter on lack of compelling incentive

10 Feb 2025, 08:19 am
Financial Nigeria
eNaira, other CBDCs falter on lack of compelling incentive

News Highlight

GlobalData said CBDC requires interoperability, privacy protection, robust infrastructure, and clear benefits of use to become currency in the future.

L-R: Former Nigerian President Muhammadu Buhari and fmr. CBN governor Godwin Emefiele during the official launch of enaira in October 2021

A new analysis by GlobalData, a leading data and analytics company, has attributed the very limited uptake of Central Bank Digital Currency (CBDC) in countries where it has fully launched, including Nigeria, the Bahamas, Jamaica, and the Eastern Caribbean Currency Union, to the lack of compelling incentives for consumers to switch from the payment methods they are already used to.

GlobalData said CBDC requires interoperability, privacy protection, robust infrastructure, and clear benefits of use to become currency in the future.   

The eNaira was launched in Nigeria in October 2021 amid the Central Bank of Nigeria’s prohibition of the processing of cryptocurrency transactions by regulated banks and following the use of digital currency to back the EndSARS protest in the country a year earlier.

GlobalData’s latest report, “The State of Central Bank Digital Currencies in 2025 and Beyond,” highlights that retail CBDCs fail to address real consumer needs or pain points meaningfully. Furthermore, they offer no clear tangible benefits that would drive user adoption.


Related News