BOOM FINANCE

THE DISASTROUS FAILURE OF NIGERIA’S CENTRAL BANK DIGITAL CURRENCY – THE eNAIRA

The eNAIRA is Nigeria’s failed Central Bank Digital Currency (CBDC) experiment, launched in October 2021.

The eNaira was not based upon an interest bearing debt contract which means that it was meant to exist more as a form of electronic cash. Disastrously, the Government deliberately decided to restrict and withdraw physical cash as a key part of the experiment. That was a very grave mistake, similar to what had happened in India previously in 2016 when the Indian Government instantly removed 86 % of physical cash from circulation. This plunged the poor of India into a huge crisis and a desperate search for survival.

But Nigeria’s central bank and government ignored all of that. And that is not all they ignored.

Cash is the People’s money, interest bearing and anonymous which must be made available by the Government upon demand from the People. That is what all of monetary history tells us. To ignore such is to court social, financial and economic disaster.

https://tinyurl.com/yn4xb92a