CBDCs have been a buzzword these days. Many countries across the globe are making guidelines to adopt this new-age financial tool.
Nigeria, an African country, was one of the first nations across the globe to launch a CBDC. The digital currency, titled eNaira, was launched in 2021. However, due to the lack of adoption of the same, the government has been compelled to artificially increase its usage.
In the first of its kind news, Nigeria’s Central Bank, on 6 December, issued a directive to the country’s financial businesses, noting that individuals and businesses would now be limited to withdrawing $45 (₦20,000) per day and $225 (₦100,000) per week from ATMs.
Excess cash withdrawal attracts fees
Moreover, individuals have been hit with a five percent fee, while businesses have been charged a 10 percent fee for amounts above those limits. In the words of Haruna Mustafa, the Director of Banking Supervision, ‘Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.’
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It is pointed out that prior to this directive, the daily limit on cash withdrawals was $338 (₦150,000) for individuals and $1,128 (₦500,000) for businesses.
Interestingly, ever since its launch in 2021, the adoption rates of the eNaira have been paltry. The Central Bank of Nigeria has been struggling to persuade its people regarding the adoption of CBDCs. Reports suggest that less than 0.5 percent of the Nigerian population has made use of the eNaira since its launch.
