Is the Nigerian CBDC already at the end of the line?

In a recent tweet, Timi Ajiboye, one of the founders of BuyCoins, Nigeria's leading cryptocurrency exchange, asked his followers if they had ever used eNaira. the central bank's digital currency, which operates on the Binance Smart Chain and operates on a 1: 1 scale with Naira. Replies to the tweet provided insight into how residents view CBDC.

Replies to the tweet asking if people had used it and why they used it showed that eNaira was only known by name to citizens. The majority admitted they never used it, while others explained they used CBDC just to see how it worked.

One of the problems with the eNaira project, it seems, was the government's inability to build a sense of trust in the residents before the project was launched. By all standards, the eNaira launch was sudden. Although the government said the project had been in the works for years, residents of the country didn't know it would arrive until a couple of months before launch. Suddenly, there was an entirely new legal tender in circulation.

Another problem was access and ease of spending. One user responded to Ajiboye's tweet that the government cannot simply expect citizens to start using the currency without government intervention. They suggested that the government lead the way by paying for well-known welfare programs using eNaira. "The Nigerian government should move social welfare programs and NYSC payments to eNaira to begin with," the user explained. “It will make payments cheap and very efficient. In this way, the use will increase. They shouldn't just expect us to start using it. "

Users have also noticed the inability to spend eNaira. There are currently few or no trading options for those looking to spend their eNaira, making it a near-worthless legal tender. However, CBDC is still in its infancy and has a lot to do.

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