Nigeria rally to promote CBDC usage, ban monthly ATM withdrawals over $225

Nigeria, earlier this year, officially launched its central bank digital currency (CBDC) called eNaira. The Nigerian government has now banned weekly ATM withdrawals above $225 (approximately Rs 18,565), aiming to promote the use of their CBDC among the masses. On a per day basis, ATM withdrawals have been capped at $45 (approximately Rs 3,710) in the African country. Nigeria has become one of the first countries in the world to roll out its full CBDC. Countries like China and India are still testing their respective national digital currencies.

Nigeria is looking to add cutting-edge technology to its existing financial systems. Along with promoting the use of electronicThe government is also promoting people to use online payments and mobile banking.

“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, cards, eNaira, etc.) to conduct their banking transactions,” the Nigerian government said in a statement. declare. official statement.

is built in blockchain technology, CBDCs work like cryptocurrency, but unlike independent and untraceable cryptocurrency transactions, CBDCs are issued and regulated by central banks.

Necessary, CBDC is a virtual representation of fiat currency, but due to the use of a blockchain, the track record of CBDC transactions is more transparent and immutable compared to traditional online transactions.

The Nigerian government is aiming to attract more than eight million people to use eNaira as a payment method in the coming months, details revealed in August by Godwin EmefieleGovernor of the Central Bank of Nigeria.

eNaira was launched on October 25th. CBDC has garnered over 840,000 downloads in over 270,000 active wallets in the first few weeks of its launch.

As of two months ago, about 200,000 transactions worth more than $9.5 million (approximately Rs. 75 crore) were recorded via eNaira.

Intended to expand the use cases of eNaira, the government is also looking to allow people to pay for utility bill and book tickets via CBDC.

The country plans to use the CBDC as a tool to bring unbanked citizens into the financial system.

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