The IMF has listed the risks of using the digital currency of the Central Bank of Nigeria

However, local authorities are already taking active steps towards managing them

19.11.2021 - 10:40

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What’s new? Jack Ree, an economist at the IMF African Department, stated that the state-owned digital currency eNaira carries risks for monetary policy implementation, cybersecurity, operational resilience, as well as financial integrity and stability.

Jack Ree's report

What measures are the authorities taking? According to Ree, the Nigerian government is already taking active steps towards managing the aforementioned risks. For instance, the authorities have imposed daily transaction limits on the transfer of funds from bank deposits to eNaira wallets.

In addition, Nigeria uses a tiered identity verification system of users.

“For now only people with a bank verification number can open a wallet, but over time coverage will be expanded to people with registered SIM cards and to those with mobile phones but no ID numbers. The latter categories of holders would be subject to tighter limits,” the report says.

What had happened before? At the end of October, it was mentioned that the Federal High Court of Nigeria had approved the issue of the national digital currency. The country's central bank believes that the new tool “will make financial transactions easier and smoother for all segments of society.”

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