Nigerians have not adopted the state CBDC. The crypto-savvy population distrusts the ruling elites. The rejection of eNaira could be reflected in other countries.
The local Nigerian eNaira CBDC has been in place for just over a year. However, it has not reached its intended audiences, and adoption is extremely low, with just 0.5% of the country’s population, according to recent reports.
Launched in October 2021, eNaira CBDC was designed to help the unbanked in Africa’s most populous nation. However, widespread confusion and general mistrust of the ruling elite have made it difficult for the country’s 218 million people to adopt it.
On November 3, geopolitical analyst Nick Giambruno expressed his thoughts on the CBDC situation, proclaiming that “eNaira has been a massive failure.”
Nigeria has been a “petri dish” for central bankers, academics, politicians, and a “variety of elites” from more than 100 countries, he added.
Nigerians Prefer ‘Real’ Cryptocurrencies
With only 1 in 200 people using eNaira, it has fallen far short of government expectations. This came as a surprise to the ruling elites, Giambruno added, arguing the following:
“They thought Nigerians couldn’t tell the difference between Bitcoin and eNaira; after all, they are both digital currencies.”
Nigerians are big on crypto, with the country ranking 11th globally in Bitcoin adoption. Furthermore, they are generally wary of anything the state imposes on them, favoring more decentralized and unrestricted digital assets.
In August, BeInCrypto reported that Nigeria led the global search trends for Bitcoin and crypto information. The growing demand for cryptocurrencies came after its central bank banned banks from providing cryptocurrency exchange services in February 2021.
In conclusion, the analyst called it a victory for freedom:
“The failure of CBDCs in Nigeria could throw sand in the gears of the elites’ plan to implement them worldwide. That would be very positive for human freedom.”
Nigeria could now set a precedent for CBDC adoption (or rejection, it seems) in other countries planning to roll out, such as China.
Global CBDC Implementation Perspective
According to the Atlantic Council, 15 countries are currently testing a CBDC, including China, Russia, Kazakhstan, Thailand, and Saudi Arabia. It is no surprise that authoritarian regimes like these are leading the race to implement their state-controlled digital currencies.
Earlier this week, BeInCrypto reported on concerns related to a CBDC tied to national digital IDs. It would give autocratic governments the perfect tools to monitor and control what their citizens can spend, and where.
In short, Nigerians have been the first to reject a full-scale CBDC, having seen what their leaders are actually doing.
By Audy Castaneda
