Nigeria has limited cash withdrawals in an attempt to lure users into its central bank digital currency (CBDC) eNaira.
At its launch, eNaira was Africa’s first sovereign digital currency, and its progress has been closely watched for indications of how other CBDC projects might go. In October this year, the Central Bank of Nigeria (CBN) celebrated the first anniversary of the digital currency, noting that it brought the country into the center of global attention. Following the growing interest in digital currencies, CBN took a new step towards increasing usage.
Nigeria Focuses on Use of Digital Currency
Nigeria has restricted cash withdrawals in an effort to lure consumers towards alternatives, including its own digital currency, eNaira.
The Central Bank of Nigeria (CBN) sent a letter to banks and other financial institutions on Tuesday. Bank withdrawals; limited it to just $225 a week for individuals and $1,123 for businesses. Withdrawals of $45 per day can be made from ATMs. Customers wishing to withdraw higher amounts will have to pay a 5 to 10 percent transaction fee.
Haruna B. Mustafa, Director of Banking Supervision of the Central Bank, said that customers should be “encouraged to use alternative channels (internet banking, mobile banking applications, USSD cards/POS, eNaira, etc.) to perform their banking transactions”.
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