Lagos, June 24, 2023: An economist, Prof. Uche Uwaleke, has commended the International Monetary Fund (IMF) for working on a global Central Bank Digital Currency (CBDC) platform to enable transactions between countries.<\/p>\n\n\n\n
Uwaleke, a Professor of Finance and Capital market, Nasarawa State University, Keffi, made the commendation on Friday in Lagos.<\/p>\n\n\n\n
He said the decision to come up with a concept of a global CBDC was a welcomed development.<\/p>\n\n\n\n
IMF Managing Director, Kristalina Georgieva, had on June 19, in Morocco, said the organisation was working on a platform for CBDC to enable transactions between countries.<\/p>\n\n\n\n
The IMF wanted Central banks to agree on a common regulatory platform that would create a vacuum that would likely be filled by cryptocurrencies.<\/p>\n\n\n\n
A CBDC is a digital currency controlled by the Central Bank, while cryptocurrencies are nearly always decentralised.<\/p>\n\n\n\n
Already, 114 central banks are in their final stages preparing to launch CBDC, with about 10 already successfully completed, and Nigeria\u2019s enaira is one of those.<\/p>\n\n\n\n
According to Uwaleke, a global CBDC will facilitate international transactions and interoperability faster than fragmented efforts by individual countries.<\/p>\n\n\n\n
He said the concept would equally reduce the threat of private digital currencies such as bitcoin to Central Bank Digital Currencies.<\/p>\n\n\n\n
\u201cThe major challenge that needs to be overcome to enhance interoperability is fragmented regulatory framework.<\/p>\n\n\n\n
\u201cA global CBDC will not replace the need for individual countries\u2019 CBDC. Rather, it will complement it.<\/p>\n\n\n\n
\u201cWhile the former will be used to facilitate payments in foreign currencies, the latter can be used chiefly for transactions within a domestic economy,\u201d he said.<\/p>\n\n\n\n
Uwaleke, however, expressed dissatisfaction over the slow adoption of the enaira.<\/p>\n\n\n\n
He said: \u201cwide adoption of the enaira requires massive sensitisation and enlightenment campaigns.<\/p>\n\n\n\n
\u201cMany Nigerians still do not know about the eNaira and how it is used.\u201d<\/p>\n\n\n\n
The economist, therefore, called on the government to help by ensuring that a fraction of civil servants salaries were paid using eNaira, saying that would improve its adoption.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"
Lagos, June 24, 2023: An economist, Prof. Uche Uwaleke, has commended the International Monetary Fund (IMF) for working on a global Central Bank Digital Currency (CBDC) platform to enable transactions between countries. Uwaleke, a Professor of Finance and Capital market, Nasarawa State University, Keffi, made the commendation on Friday in Lagos. He said the decision […]<\/p>\n","protected":false},"author":2,"featured_media":25741,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[949],"tags":[156],"class_list":["post-51092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-imf","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n