Report Analysis Superiority Between Nigeria’s e-Naira and Ghana’s e-cedis

A new report published by TechpointAfrica’ has compared the eNaira and the eCedi, revealing how much progress has been made and which has the most potential.

The report compared issues of usefulness, inoperability, points of contact, as well as cross-border capabilities.

It also proposed continuous research by the respective Central Banks, stating that “CBDCs are new forms of financial technology, and central banks must invest heavily in research and development to find the best ways to deploy them.

“Financial inclusion is one of the primary objectives of CBDCs in Africa, and the eCedi has made significant provisions to ensure faster adoption of the digital currency, especially in low connectivity areas, giving it an upper hand against the eNaira.

“However, there isn’t significant data to prove the success of the eCedi’s offline payment technology. Making data publicly available for a comprehensive analysis of CBDCs should also be a consideration by African apex banks, as this helps experts proffer solutions to problems with the new technology.

“CBDCs are new forms of financial technology, and central banks must invest heavily in research and development to find the best ways to deploy them.

“Since the rise of blockchain-powered money, known as cryptocurrencies, many governments worldwide have sought ways to be a part of the decentralized financial system. One of the ways they’re doing this is by issuing central bank digital currencies (CBDCs).

“Being a token-based digital currency, it will be held in wallets, which financial institutions will manage alongside a smartphone application to access them.

“Unlike Ghana, however, it was revealed that the eNaira would run on a permissioned blockchain known as the Hyperledger Fabric. This means that eNaira will be controlled by the issuer — the CBN.

“While the chosen blockchain gives the CBN sole control of the digital currency, unlike public blockchains like Bitcoin, which are controlled by a network of computers, it still requires the services of Bitt Inc, a fintech company in Barbados.”

” The eNaira is doing better than the eCedi numbers-wise, but this is an unfair comparison considering the eNaira has gained country-wide adoption in the seven months since its launch while the eCedi has been in testing in a remote village for less than a month,

” While PwC’s index ranks the eNaira as the top retail CBDC, there are indicators that most Nigerians have not had a reason to use it. According to Punch, visits to businesses in Nigeria’s capital Abuja revealed that customers and business owners had no idea how the digital currency worked.

“Statista states that only 37.3% of Nigerians accessed the Internet via a mobile device in 2022.

“Financial inclusion is one of the primary objectives of CBDCs in Africa, and the eCedi has made significant provisions to ensure faster adoption of the digital currency, especially in low connectivity areas, giving it an upper hand against the eNaira.

“However, there isn’t significant data to prove the success of the eCedi’s offline payment technology. Making data publicly available for a comprehensive analysis of CBDCs should also be a consideration by African apex banks, as this helps experts proffer solutions to problems with the new technology. ” the analysis said.

 

 

 

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