The Central Bank of Nigeria (CBN) is, in words, with a New York-based technology firm, R3, to revamp the underlying technology of its digital currency, the eNaira. According to Bloomberg, the move aims to create an efficient digital currency and ensure mass adoption.
The report claimed that the new software for the eNaira would be created to give the CBN complete control over the initiative. It also noted that the effort to develop the eNaira began in 2021 with the help of the financial software company, Bitt.
Although Nigeria was one of the first countries to have launched a national digital currency, the eNaira got off to a sluggish start, with low adoption. International Monetary Fund observed that the usage of the eNaira has failed to pick up since its launch in 2021. IMF stated that only about eight per cent of eNaira wallets were in use, with an average transaction value of N53,000. It also said that as of November 2022, total eNaira wallet downloads amounted to 942,000.
Reacting to the news of the CBN’s talks with R3, Bitt said it was aware that the CBN works with various partners for its technological innovations. It affirmed that it still works closely with the CBN and is “developing additional features and enhancements.”
The CBN’s move to engage a new technology partner is part of its effort to revamp the eNaira and ensure its mass adoption. The new software is to provide the CBN with complete control over the digital currency initiative and help increase its usage and transaction value.
