Nigerians have not been so trusting of the use of a central bank digital currency. The country’s government and financial institutions have now stepped in to push citizens to it. Tuesday it was revealed that Nigeria ATM Withdrawals are limited to $20,000 Naira (US$45) in order to force CBDC use.
Several countries are experimenting with digital currencies within the dark continent and abroad. According to BIS, at least 19 countries in Africa are currently experimenting with their own centralized token. And this growth is happening amidst the IMF calling for better regulation of cryptocurrencies within the continent.
It appears the government of Nigeria wants their country to be ahead of the curve and a first at normalizing the digital currency, eNaira.
Nigeria ATM Withdrawals Limitations
Per day, a regular citizen can now only access ₦20,000 (US$45) via ATM. Per week, Nigerians can only take out ₦100,000 (US$225).
Corporations can access more, however even they too are being limited. A business owner will only be allowed access to 5x more. That’s a sum of ₦500,000 (US$1125) weekly — No matter the scenario.
The only way around these limits is to pay the Central Banks a fee for using fiat currency aka cold hard Nairas (cash).
Nigerian citizens who choose to take out more money will be taxed a 5% fee. Businesses will be taxed double that or 10%.
Positive Reasons To Use CBDC in Nigerias
The Central Nigeria Bank had representative Haruna Mustafa speak on the transition.
“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions,” said Mustafa on the forced change.
And that encouragement is not a bad idea. Nigeria suffers from widespread corruption. Many educated officials say having the society operate on a digital currency system could help curtail much of that political corruption and illegal activities.
Only 1 of every 200 citizens of the African country is currently using the Central Nigerian Bank’s CBDC, the eNaira.
Nigeria is one of the world’s largest countries to have its own CBDC launched on a nationwide scale.
Other countries of Africa currently experimenting with their own Central Bank Digital Currency includes: Morocco, Malawai, Algeria, Botswana, Rawanda, Ghana, Mauritius, Mozambique, Zimbabwe, Namibia, Tanzania, Uganda, Egypt, Kenya, South Africa, and Madagascar.
The Banks of the Central African States (BCAS) and Western African States (BWAS) are also on-board with moving the continent to CBDC.The most populous nation of its continent, the Giant of Africa has over 211-million people dwelling in its borders. And the country is oil rich with over 9100 millionaires living there. Vanguard reports that group of 9.1k is said to be worth over $207-billion.