Article Image

IPFS News Link • Central Banks/Banking

Africa's First Test Run For A CBDC has Failed

•, By Martin Armstrong

Nigeria attempted to slowly roll out the program dubbed eNaira built on the Hyperleger Fabric blockchain. The Central Bank of Nigeria (CBN) is solely responsible for running the nodes of this digital currency. Beginning stress tests stated this currency could execute 2,000 transactions per section.  In October 2021, the government began offering incentives to citizens who chose to CBN.

A year later, the country was still hesitant to make the switch so the central bank began implementing forceful measures. In October 2022, the CBN decided to cancel and resign the currency in a "move aimed at restoring the control of the Central Bank of Nigeria (CBN) over currency in circulation."

They stated that the original paper notes would only be legal tender until January 31, 2023, leaving the people with no alternative but to convert their cash. Nigerians were no stranger to the concept of currency cancellation as it is something the government has routinely done.

The CBN openly announced that the end goal was to target a 100% cashless society replaced with eNaira. Fewer than 0.5% of Nigerians adopted the eNaira and protests erupted across the nation.

The central bank set a cash withdrawal limit of ?100,000 ($225) per week for individuals and ?500,000 ($1,123) for businesses. Citizens wishing to take out larger sums were subject to a processing fee between 5% and 10%. ATMs were limited to ?20,000 ($45) per day, and only ?200 ($0.45) notes or lower denominations were available in the machines.

Home Grown Food