Following what appears to be an acceptance of the Central Bank of Nigeria’s digital currency (CBDC), analysts have weighed in on the lack of trust in the Nigerian government saying that it is a major deterrent to the success of the eNaira.
A significant number of some of the major Fintech startups are concentrated in Nigeria and competing with these Fintech startups highly limits the prospect of success of the eNaira, skeptical analysts have expressed.
Financial Times reports that this impending menace from hugely funded Fintech startups puts a huge question mark on the chances of the eNaira fulfilling the objectives of the CBN. Some of which include; opening up the financial system to people and increasing social and welfare spending.
Adebayo Adebuwagun, an analyst at Songhai Advisory, expressed his doubts of the chances of the e-naira succeeding. In His words, some of the objectives and goals the CBN is looking to achieve is already being handled by other fintech startups.
“The challenge is that of all this are already adequately addressed by other financial platforms. Nigeria is the leading state of Fintech startups in Africa so there are so many options for people to pay fast”, he said.
Another analyst at EFG Hermes, Ronak Gadhia, added that the government having access to and monitoring e-naira transactions might discourage people from using the e-naira.
“The government knows all the e-transactions and in a country like Nigeria where there is a level of friction in the trust between the masses and the government, there may be skepticism in terms of adotption”, Gadhia expalined.
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