Skepticism trails Digital Currency ahead of launch
By Oghale Mafuru
Ahead of the launch of the Digital Currency by the Central Bank of Nigeria (CBN), economic analysts have expressed skepticism in the success of the move. The move is expected to align the economy with global practices and payment systems.
Speaking to MARKETING EDGE, Akpakpo Eddyville, an economic analyst described the initiative as a laudable one. He, however, expressed doubt on its success because people are likely to be skeptical about a government-controlled digital currency.
According to him, “cryptocurrency is void of inflation and government control. The CBN’s digital currency is actually the naira in digital format. It’s really going to take a lot to really receive the same mass adoption just like other cryptocurrencies because people are skeptical about involving in currencies that have government control. A lot of people enjoy their privacy using bitcoin and other cryptocurrencies.”
The economic analyst who asserted that digital currency strives when there is mass adoption with participation from around the world asked rhetorically, “Do you see people in the United States and indeed other countries of the world accepting the Nigerian digital currency as an exchange for value? Only time will tell”.
He added that “nobody wants a currency that one person can wake up tomorrow and say ‘I am devaluing this currency to be able to meet up with this or I am overvaluing this currency to be able to meet up with that’.”
Speaking similarly on the move, Aliogo Ugo, Business Consultant, said digital currencies offer vast opportunities for economic inclusiveness, flexibility and growth. He however advised the apex bank to examine the decision before implementation as any digital currency requires global acceptance to be successful.
He said: “Cryptocurrency Internationally is making waves. People are investing but again, we don’t want to rush into it. We want to try to study the market because in that market, there is a lot of volatility”.
Recall that Godwin Emefiele, Governor, CBN, announced that the country will be launching its digital currency in October, noting that the “e-naira” would operate as a wallet against which customers can hold existing funds in their bank account.
The apex bank had barred its banks and other financial institutions.
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